Either from the industry analysis or from the marketing research done earlier, the entrepreneur should have a good idea of who the customer or target market will be. Knowledge of the target market provides a basis for determining the appropriate marketing action strategy that will effectively meet its needs. The defined target market will usually represent one or more segments of the entire market. Thus, it is important even before beginning the research to understand what market segmentation is before determining the appropriate target market. Market segmentation is the process of dividing the market into small homogeneous groups. Market segmentation allows the entrepreneur to more effectively respond to the needs of more homogeneous consumers. Otherwise the entrepreneur would have to identify a product or service that would meet the needs of everyone in the marketplace.