Market Segmentation

What is market segmentation?
Market segmentation is a process that consists of sectioning the target market

into smaller groups that share similar characteristics, such as age, income,
personality traits, behavior, interests, needs, or location.
Knowing your market segmentation will help you target your product, sales, and
marketing methods. It can help your product development processes by guiding
how you build product offers for various groups, such as males versus women or
high-income versus low-income. These segments can be used to optimize
products, marketing, advertising, and sales efforts.
Segmentation allows brands to create strategies for different types of consumers,

depending on how they perceive the overall value of certain products and
services. In this way, they can introduce a more personalized message with the
certainty that it will be received successfully.
Types of market segmentation

Market segmentation is the process of breaking up a large market into smaller
groups of customers with similar needs, traits, or ways of behaving. There are
4 types of market segmentation. Below, we describe each of them:
Geographic segmentation
Geographic segmentation consists of creating different groups of customers
based on geographic boundaries.
A fast-food chain might change its menu items and specials based on what
people in a certain area like. For example, they might have spicy food on the
menu in places where spicy food is common.
The needs and interests of potential consumers vary according to their

geographic location, climate, and region. So, geographic segmentation is
valuable. Understanding geographic segmentation allows you to determine where
to sell and advertise a brand and where to expand a business.
Demographic segmentation
Demographic segmentation divides the market through different variables.
Demographic segmentation includes age, gender, nationality, education level,
family size, occupation, income, etc.
A company that sells luxury cars might look for customers with a certain income,
age, or job. For example, they might make ads for older, wealthy people who are
likely to be interested in luxury cars.
Demographic segmentation is one of the most widely used forms of market

segmentation since it is based on knowing how customers use your products and
services and how much they are willing to pay for them. Surely demographic
segmentation is very important.
Psychographic segmentation
Psychographic segmentation consists of grouping the target audience based on
their behavior, lifestyle, attitudes, and interests.
A fitness brand might try to reach customers based on how they live and who
they are. For example, they might go after people who like to be active and care
about their health.
To understand the target audience, market research methods such as focus

groups, surveys, interviews, and case studies can successfully compile
psychographic segmentation conclusions.
Behavioral segmentation
Behavioral segmentation focuses on specific reactions, i.e. consumer behaviors,
patterns, and how customers go through their decision-making and purchasing
processes.
An online store can target customers based on what they buy. For example, they
might give discounts to people who buy from them often or send personalized
suggestions based on what people have bought in the past.
The public’s attitudes towards your brand, how they use it, and their awareness
are examples of behavioral segmentation. Collecting behavioral segmentation
data is similar to how you would find psychographic data. This allows marketers
to develop a more targeted approach.
Market segmentation objectives

There are different objectives for segmentation of market. Here we tell you what
each of them is:
 Product: Creating successful products is one of the main objectives of

organizations and one of the reasons why they conduct a market
segment. This allows you to add the right features to your product and
will also help you reduce costs to meet the needs of your target
audience.
 Price: Another market segmentation objective is establishing the right
price for your products. Identifying which is the public that will be willing
to pay for it.
 Promotion: It helps you target each segment’s members and select them
in different categories so that you can direct your strategies
appropriately.
 Place: The ultimate goal of segmentation is to decide how you offer a
product to each group of consumers and make it pleasant to them.
Strategies for market segmentation

A market segmentation strategy is a plan for dividing a market into different
segments based on certain criteria, such as demographics, geography,
psychographics, and behavior. Here are some steps that businesses can take to
create a good strategy for it:
1. Research the market:
Before making a segmentation strategy, it’s important to research the different
parts of the target market and their needs and preferences.
2. Identify segmentation criteria:

Based on the market segment, businesses can figure out which criteria for
segmenting their target market are most important. This could include things like
age, gender, income, and level of education, or it could include things like
personality, lifestyle, and values.
3. Market segmentation:
Businesses can divide the market into different segments based on the criteria
they have found. It’s important to ensure that each part is clear, measurable, and
useful.
4. Develop targeted marketing strategies:

Businesses can make marketing plans for each segment when the market is
divided into segments. This could mean making customized products and
services, running targeted marketing campaigns, and adjusting pricing strategies
to meet the needs and preferences of each segment.
5. Evaluate how well the segmentation strategy worked:

Businesses should keep an eye on the performance of all the customer segments
and make changes as needed to ensure the segmentation strategy works. This
could mean getting customer feedback, looking at sales data, and tracking how
well marketing campaigns are working.
A market segmentation strategy can help businesses better understand their

customers, create targeted marketing plans, increase customer satisfaction,
improve product development, increase market share, increase profits, and gain
a competitive advantage.

Market Segmentation

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What is market segmentation?

Market segmentation is a process that consists of sectioning the target market

Segmentation allows brands to create strategies for different types of consumers,

Types of market segmentation

The needs and interests of potential consumers vary according to their

Demographic segmentation is one of the most widely used forms of market

To understand the target audience, market research methods such as focus

Market segmentation objectives

 Product: Creating successful products is one of the main objectives of

Strategies for market segmentation

2. Identify segmentation criteria:

4. Develop targeted marketing strategies:

5. Evaluate how well the segmentation strategy worked:

A market segmentation strategy can help businesses better understand their

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