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Physical segmentation gives every network its own switches. That works, but every extra switch is another cost and another device to manage.
VLANs, virtual local area networks, segment the network logically instead. A switch's ports are assigned to VLANs: here ports 1 to 8 are VLAN 10, 9 to 16 VLAN 20 and 17 to 24 VLAN 30. Devices on ports in the same VLAN can reach each other at layer 2 and hear each other's broadcasts. Devices on different VLANs cannot, even on the same switch, unless a router or other layer 3 device joins the VLANs.
The logical layout does not have to follow the physical one. When the switches in buildings A, B and C carry the VLANs between them, a Sales PC in building A and a Sales PC in building C are on one network, while two PCs on neighbouring ports of one switch can be on two. So read the VLAN, not the building or the switch.
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