How can a firm benefit from segmenting the market?

The primary reason to differentiate customers into segments is to capture the strategic advantage
of meeting differing needs with tailored mixes.The objective and the key to successful segmentation is to find differing needs that match the firm's competitive advantages and thus can be served at a profit better than by the competition.Finding substantial differences that others have overlooked can constitute a "customer insight." It can create a significant opportunity for the firm.