In order to market a product, companies must determine who they are going to try to sell the product to. This group of people is known as a target market.

Market segmentation is the process of classifying people who form a given market into even smaller groups. A market can be segmented into four different categories, each is described in detail in the visual to the left.

Lohr, L. (2008). Creating graphics for learning and performance (2nd ed.).  Upper Saddle River, NJ: Pearson Education.