Market Segmentation & Creating value for Targeted Customers

Companies use this tool to focus on their customers with respect to the different segments like age range, level of income, level of information and education, product usage by the customers, health conscious and taste conscious customers etc. By doing so, they divide the market into smaller groups of buyers with different needs and characteristics. This is a very helpful tool for target marketing because marketers can easily perform their tasks on behalf of this information availability and can market and place their products and promotions specifically. This process creates value for the targeted customers.
For Instance, P&G is manufacturing Pantene and Head & Shoulder; and we all know that Pantene's ads on the TV or Bill boards is only focusing on the women and same with H&S, it only focuses on men.