by definition the members of a market segment have
Market segmentation Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. In dividing or segmenting markets, researchers typically look for common characteristics such as shared needs, common interests, similar lifestyles or even similar demographic profiles. The overall aim of segmentation is to identify high yield segments – that is, those segments that are likely to be the most profitable or that have growth potential – so that these can be selected for special attention (i.e. become target markets).
Market economy A market economy is an economic system where decisions regarding investment, production, and distribution are based on the interplay of supply and demand,[1] which determines the prices of goods and services.[2] The major defining characteristic of a market economy is that investment decisions, or the allocation of producer good, are primarily made through capital and financial markets.[3] This is contrasted with a planned economy, where investment and production decisions are embodied in an integrated plan of production established by a state or other organizational body that controls the factors of production.