Market segmentation – is the process of breaking down a larger market into smaller segments with specific characteristics. It helps to customize a product/ service and also evolve the advertising strategy to reach the target group. Target market segments are typically divided into (Process) – 

1. Geographic- based on the socio- economic structure of rural urban population is different and affects the purchasing power. 

2. Demographic – many factors affect the customers as individual like age, race, religion, gender, income level, family size, occupation, education level and marital status. 

3. Behavioristic – customers reason for purchasing a product can be varied and complex. It could be fascination with a product or identification with a brand or loyalty with an existing brand or it could be the cost etc. 

4. Psychographic - the desire for the felling of elevated status, enhanced appearance and feeling rich are some considerations. It applies specially to luxury items.