Market segment is an identifiable group with similar needs and wants within a market.
Firms adjust their market accordingly to these needs and wants of the consumer.
This is a way of dividing up the market.
Examples of different identifiable groups are age, gender, income, usage rate (which is how often you will use products) and socio-economic grouping (which is the method of segmenting people based on their income and job).
This will impact a business as their products may be attracted to only a certain segment which may lower their overall revenue and profit. It may also limit the amount of ideas that they have for a new product as an idea that may develop may not be appropriate or popular with the market segment that the business usually attracts and be unpopular.
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