Market fragmentation

Marketing dictionary

Market fragmentation

Emergence of new segments (in a previously homogeneous market) which have their own distinct needs, requirements, and preferences. These fragments reduce the effectiveness of mass marketing techniques and erode brand loyalty. Separation of a market that is relatively uniform in character into different segments that have different preferences and demand patterns, each requiring different marketing approaches. The division of the cellular phone market into several divergent markets for different classes of smart phone is an example of market fragmentation. ECONOMICS: A situation in which there are many different types of customer for a particular product or service or many different companies providing a particular product or service: In some developing countries market fragmentation is widespread in the financial sector. Source: Cambridge Dictionaries Online

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