Segmentation by satisfaction is a marketing strategy that involves dividing a target market into smaller groups based on their level of satisfaction with a product or service. This segmentation approach recognizes that not all customers have the same level of satisfaction and therefore, tailors marketing efforts to meet the specific needs and preferences of each segment. By understanding the varying levels of satisfaction, businesses can better identify and target their most loyal and satisfied customers, as well as address the concerns and needs of dissatisfied customers. This allows for more effective and personalized marketing strategies, ultimately leading to increased customer retention and brand loyalty.