what is market segmentation and why is it important 
market segmentation is the process of dividing a broad target market into subsets of consumers with common needs interests or priorities it s important because it allows companies to tailor their products services and marketing strategies to specific groups potentially increasing effectiveness and efficiency effective segmentation can lead to better customer satisfaction improved product development more efficient use of marketing resources and ultimately increased profitability the bottom linemarket dynamics refer to the forces patterns and behaviors that shape the interactions between producers consumers and other stakeholders in an economic system these include factors such as supply and demand competition pricing strategies technological innovation consumer preferences regulatory environments and economic cycles all of which collectively determine how markets function evolve and respond to changes over time 