Market segmentation consists of several interrelated activities and decisions. The process begins with the definition of market to be segmented. After defining which market to segment, the second step is to decide how to segment this market.  the next section. The third step in segmentation is to form segments. After completing the formation of segments, the company can now utilize finer segmentation  strategies. At the final step, companies need to decide which segmentation approach they should use and evaluate the segments.