Glossary/Strategy & Frameworks/Market Segmentation
Strategy & Frameworks
Market Segmentation
Dividing a market into groups of buyers with shared needs or traits so offers and messages can be tailored; formalized by Wendell Smith in 1956.
By Brandon Mina·CEO, BrandPilot AI·Updated November 2026
Short answer
Market segmentation is the practice of dividing a market into groups of buyers with shared needs or traits so that offers and messages can be tailored to them. Wendell Smith formalized the concept in 1956. Segments may be defined by demographics, behavior, needs or attitudes, and they form the basis for targeting and positioning.