What is the primary objective of segmentation? It is to identify customers with like attributes so you can better market to that specific group of people.
How does a small business use segmentation to improve marketing?
Most businesses can divide their customers into segments of some kind. Having a segment of people with similar needs will make it easier for you to design a promotional activity geared directly to them.
Examples:
Restaurant – A restaurant could have catering customers and customers who come into the location to eat. If you develop a campaigns designed for each of these segments, you will be more focused in your efforts and will very likely see a greater return on investment versus having one generic message go out to both groups.
Travel agency – A travel agency could segment according to families with children, couples, and singles. These three segments will have different preferences on vacation options. You can create packages and promotions for each group that would be more effective than marketing the same tours to everyone.