What is market segmentation? Why is it essential?

What is market segmentation? Why is it essential?

Segmenting is the grouping of the market according to certain common traits or characteristics portrayed by the consumers like age, income level, occupation, habits and preferences, lifestyle etc. It is needed to understand the needs of consumers and accordingly frame the required strategies.For eg. Pepsi in the Northern America tastes less sweet keeping in mind the calorie concious consumers of that region, as compared to Pepsi in Latin America where Latin Americans prefer more sugar in their drink.