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A segment is considered an element of a business and it generates its revenues besides forming its product lines, products, and service offerings. Commonly, segments have got discrete associated operations and costs and they are also known as business segments.

Use of Segments In Graphics: In graphics, segments are defined by the shortest probable route between a couple of points. In bitmaps, the thinnest probable segment is meant the set of every pixel that lies closest to two points’ shortest path. In a vector graphic, segments are generated by identifying two endpoints before executing operations that construct straight lines.

Use of Segments In Communication: In communications, segments become a part of a network, and in the network segment, the flow of data between two points without passing through hubs, bridges, routers, and switches. A segment’s size can be defined by the number of workstations that are within it.

Use of Segments In A Database: In databases, segments are considered parts of the database and they comprise one or more than one extent. Every extent is created from units known as blocks. Blocks are the smallest units of a database. One or more than one segment comprises a tablespace.

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Advantages of Segments

Various companies having distinct business segments do gain a highly competitive benefit when they capture markets that weren’t earlier targeted by their chief operations. They are capable of building customer loyalty because their present customer base might turn into novice customers of their extra business segments. It is especially true when a business segment complements others.

With the help of segments, managers can recognize profit drivers besides segments that require improvements. A profitable business segment can cope up with the losses that others have incurred. As every segment does create its performance results, a manager is capable of deciding whether or not poor-performing business segments must be improved or retired. Again, businesses can track and respond to trends better through segmentation. This enables them to take better care of their customers’ needs.

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Top Characteristics of Market Segmentation

• Identification: People can easily recognize some segmentation variables as they are observable and easily visible. They are demographics, like sex, age, education, occupation, and marital status.
• Measurability: Every marketer should be capable of measuring a particular segment’s sales potential and also find out the degree of the effect of marketing mix components on a specific segment.
• Accessibility: Every consumer should be available and accessible to marketers.

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