The basic belief that it is not possible to serve the entire market effectively, marketers often segment markets. Critically discuss some of the more common market segmentation approaches by employed by marketers. Discuss the defined link between market segmentation, targeting and positioning.

Candidates must demonstrate what is meant by segmentation first and discuss fully why segmentation is important to organisations (e.g. the need for choosing groups of customers to serve that match the company's objectives and competences). Candidates will debate the various basis for market segmentation (e.g. customers' demographics, psychographics, behaviour, benefits sought, etc.). They must discuss the efficacy of different segmentation basis for given situations.