Heterogeneity and diversity fill an entire target market or in other words, the group of probable consumers of a product. For example, laptop consumers don't just include people looking for a portable alternative to desktop computers. Some of them may want a cheap entry-level laptop, while others will want expensive high-performance laptops. There are also those who might consider displaying large screens, while others prefer ultra-portable variants that they can easily carry around. This example illustrates heterogeneity and diversity based on the variety of product preferences. Of course, in addition to preferences, demographic and psychographic differences create heterogeneity and diversity. Nevertheless, dissimilarities within and between members of the broad target market require so-called segmentation in order to develop and implement specific strategies and tactics that would best exploit the specific group of consumers. Segmentation is a marketing strategy. By definition, segmentation refers to the process of dividing or dividing a broad target market into various subgroups based on so-called market segments, including categorizing them based on needs, wants and of common priorities and according to the probability of presenting similar purchasing behavior (Burkard, 2013). It is important to note that segmenting a large target market does not happen abruptly. The authors of the book Michael Wedel and Wagner A. Kamakura (2000, pp. 4-5) mentioned that segmentation should meet six criteria, including identifiability, richness, accessibility, stability, responsiveness and l actionability. The purpose of these criteria is not only to define a market segment but also to ensure that it remains...... middle of paper ....... In this case, segmentation helps the company to create its identity and establish its specialization. These detailed examples of the applicability of segmentation thus illustrate its importance in marketing and therefore the importance of marketing in business strategy. Note that product development, positioning strategies, pricing strategy, and differentiation strategy are all concepts that fall under the principles and practices of marketing. From the above examples, it is easy to understand that segmentation can help a business organization understand not only the needs and wants of customers but also its purpose and direction or, in other words, its own needs and desires. This dual understanding helps a company find its place in the market confusion caused by the heterogeneity and diversity of the target market and the existence of competitors..