Market segmentation involves dividing a market into subgroups of consumers who have common needs, characteristics, or behaviors that cause them to respond similarly to marketing strategies. The document discusses various forms of market segmentation including geographic, distribution, media, price, demographic, time, and psychographic segmentation. It provides examples to illustrate each type of segmentation. The goal of segmentation is to allow companies to focus their marketing efforts on consumer subgroups most likely to be interested in their products or services.