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A group of people that share one or more characteristics. Each market segment is unique and marketing managers decide on various criteria to create their target market(s). They may approach each segment differently, after fully understanding the needs, lifestyles, demographics and personality of the target. To meet the most basic criteria of a market segment, three characteristics must be present:  

1. Homogeneity (common needs within segment)
   
2. Distinction (unique from other groups)
   
3. Reaction (similar response to market)

Investopedia Says:
Examples of common characteristics are: interests, lifestyle, age, gender, etc. Common types of market segmentation include: geographic, demographic, psychographic and behavioral.

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