Market segmentation offers a disciplined way to choose which product categories to pursue, aligning customer needs, price tolerance, and channel dynamics. By mapping segments against profitability drivers, startups can concentrate resources, outperform competitors, and reduce wasted marketing spend. This evergreen guide explains a practical approach to segment-driven decision making, with clear steps to define meaningful groups, test assumptions, and execute category prioritization that yields sustainable growth and healthier margins in dynamic marketplaces.