Materials
Product Segmentation
Categorizing products into groups for optimized inventory, marketing, or distribution.
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Updated 2025-10-01
Definition
Product segmentation helps companies manage inventory, target customers effectively, and streamline logistics based on product type or demand.
Overview
Overview
Segmentation is often based on sales volume, value, seasonality, or customer demand patterns.
Benefits
- Better inventory planning
- Efficient warehouse management
- Targeted marketing campaigns
Example
A retailer segments products into fast-moving, slow-moving, and seasonal categories to optimize warehouse layout and stocking frequency.
Tags
#Product Segmentation#Inventory#Materials#Warehouse#Fulfillment
Related Terms
Product Lifecycle Management (PLM)
SKU Optimization
Inventory Turnover
