What aspect of marketing does market segmentation directly contribute to?

Market segmentation directly contributes to customer targeting by breaking down a larger market into smaller, more defined groups based on shared characteristics. This process allows businesses to identify and understand the specific needs, preferences, and behaviors of different segments. As a result, companies can tailor their marketing strategies, products, and services to meet the unique demands of each target audience effectively.

By focusing on targeted customer groups, businesses can create more relevant marketing messages and offers, which can lead to higher engagement and customer satisfaction. This strategic approach helps in optimizing marketing resources and increasing the likelihood of successful sales, as the offerings resonate more with the targeted consumers.

While price adjustment, sales forecasting, and product development are important aspects of business strategy, they are not as directly tied to the foundational understanding of who the customers are and how to cater to them, which is the primary goal of market segmentation.