Market segmentation involves dividing a target market into subgroups with distinct needs, characteristics, or behaviors. It allows companies to tailor their marketing mix to better attract specific segments. There are two main segmentation strategies - concentration, which focuses on one segment, and multisegment, which targets multiple segments. Key bases for segmentation include sociodemographic factors, geography, psychographics, and usage patterns. Segmenting business markets can consider factors like company size, industry type, location, technology use, and customer capabilities. Effective segmentation provides insights into purchasing trends to help companies stabilize themselves in the market.