Market segmentation involves dividing the total market into homogeneous subgroups based on characteristics like demographics, behaviors, or geographic location. There are several types of market segmentation including demographic segmentation based on factors like age, gender, income level. Geographic segmentation divides the market according to location. Behavioral segmentation analyzes purchasing patterns and site usage. Psychographic segmentation considers subjective psychological factors. The goal of market segmentation is to allow companies to better target specific subgroups with tailored products, services, and messaging.