What is Market Segmentation?

What is Market Segmentation?

What is Market Segmentation? 1580 998 Alisha Veerjee

What is Marketing Segmentation?

One of the first things you should do when starting a business or brand is segment your market. Take notice: If you develop a marketing strategy before segmenting your audience, you will hemorrhage time, money, and energy. 

When you take the time to segment your market, you will be able to better focus your appeal to your desired target audience.

There are 4 types of market segmentation: demographic, behavioral, geographic, and psychographic. Keep reading to learn about the importance of a segmentation strategy, each type of market segment, and their specific benefits.

Why market segmentation will benefit you:

– It will help you understand your audience better

When you know your audience, you can be sure that whatever you produce will be relevant to their wants and needs. Showing that you understand them will improve customer loyalty and build trust with your audience.

– You will be able to market efficiently

Segmentation will help you save time, money, and energy. By knowing exactly who your audience is, you avoid creating unnecessary campaigns that reach the wrong audience for your brand.

– It will help you attract new leads

Tapping into your targeted market will help you understand who your desired consumer is. Crafting a marketing strategy with this type of consumer in mind will create intrigue and attract greater exposure for your company. When you’re able to speak to your audience in a way that appeals to them, they have the potential to spread your company to even greater lengths by word of mouth.

Different Types Of Segmentation 

1. Demographic

Demographic Segmentation defines your audience based on factors like age, gender, location, and income. If done correctly, you will be able to gather insights into consumer’s behaviors. This data is easy to gather through analytics software and consumer insights. If you have a website, you can use analytic software like Google Analytics to track the gender and ages of those who visit your website.

2. Behavioral

Information on behavioral segments can be gathered based on customers’ purchasing habits, likes, and dislikes, brand interactions, amongst many other things. This form of segmentation is said to be the most beneficial tool when segmenting your audience. Learning about your audience’s historical behavioral patterns can help you predict their future actions, such as what digital channels they can be reached on or what prices best resonate with them. Tracking your customers’ journeys can help you understand their typical behavior; this ultimately will help you market to other potential high valued consumers.

3. Geographic

In order to target your market based on their geographic location, you can use information such as ZIP code, city, country, population density, and whether individuals live in urban or rural areas. Gathering this insight will allow you to better serve your target market by catering to the type of area they live. For instance, a clothing company will market its products differently based on whether its target audience lives in a warm or colder climate. Knowing the geographic segmentation of your consumers will save you a lot of time and money by only creating relevant advertisements for your target market.

4. Psychographic

With psychographic segmentation, you categorize your target audience by psychological characters, including, consumer values, attitudes, interests, lifestyles, beliefs, motivations, and priorities. This information will help you create or tailor ads and campaigns that will pique the interest of your audience. You can gather this information by asking customers about their interests with market research methods like surveys and interviews. 


If done correctly, segmentation will allow you to better understand your target market and divide it into smaller categories. This in turn will allow you to craft a marketing strategy that is, overall, more relevant and personalized to your ideal consumer. Companies all over the world have seen the benefits of market segments. Your message will be much more effective in reaching people when you’re able to show that you understand them.

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