Accounting Business

Different Types of Market Segmentation

Market segmentation is an invaluable asset to marketers in understanding their audience and designing effective campaigns tailored specifically for them. There are various types of market segmentation: demographic, geographic, behavioral and benefit.

Segmentation not only benefits the marketing department but can also bring great advantages to other areas, like production. By sharing buyer trends and demand data between departments, segmentation allows businesses to retain customers and grow.


Market segmentation using demographics is one of the simplest and most widespread types of customer segmentation. It involves grouping your customers according to easily observable characteristics like age, gender, family size, marital status, occupation and income level. Demographic information can also easily be combined with other forms of segmentation techniques for further customer targeting.

Clothing retailers who specialize in suits may use demographic data to target business customers in high-level positions; conversely, carmakers could target people by their income levels – providing luxury vehicles to those with extra spending money while offering more economical models for others.

Surveys can also be an excellent way to gather this type of data. Open-ended questions on surveys may reveal details about your audience that were previously unknown from other sources of data, making the results all the more useful for marketers and publishers in targeted marketing, while sharing customer trends among departments can ensure production runs smoothly without costly overruns.


Market segmentation strategies that take account of similarities and differences within their target audiences allow marketers to customize products and marketing efforts to this target market more precisely while cutting costs by targeting smaller groups of potential customers.

Psychographic segmentation incorporates factors like personality, attitude and lifestyle that help you understand the motivations of your target market and create an efficient digital marketing strategy.

Demographics aren’t the only factor at play when it comes to digital marketing; personality has just as much of an effect. Culture and family background can also play a part in how a customer makes purchasing decisions.

Athleticians, students, and race car drivers all lead different lifestyles that affect their purchase decisions. Each has unique values systems which brands can target effectively – for instance Headspace meditation app realized the impact teachers had on customer retention so created a special offer to specifically appeal to teachers – helping increase subscription base by over 25,000 people!


Behavioral market segmentation divides consumers into groups according to how they interact with a business, enabling marketers to create more targeted marketing campaigns and increase customer retention rates while optimizing marketing budgets by targeting high-value customers with personalized experiences.

Examples of behavior-based segmentation include user status (first-time, frequent and lapsed users), purchase patterns (frequent buyers, occasional buyers or non buyers), occasion purchases such as birthdays and anniversaries as well as life event purchases like birthdays and anniversaries. This helps marketers create marketing messages more targeted to the intended target group and increase success rates of targeted marketing messages that resonate with it.

Behavioral segmentation allows companies to get an accurate picture of their audience’s needs and desires through surveys and other research tools, including behavioral segmentation surveys. By targeting efforts on promising segments, businesses can maximize conversion rates and ultimately grow more revenue.


Market segmentation provides businesses with an effective tool for understanding customers, creating targeted marketing plans, increasing customer satisfaction, improving product development and gaining competitive advantages. To segment a market effectively, marketers must conduct extensive research into what matters and needs are of concern for their target audience – this may involve online surveys, focus groups or customer feedback sessions.

Segmentation strategies enable brands to focus their marketing, advertising and sales efforts more effectively by targeting specific audiences with marketing communications. A broad, untargeted approach often results in lower response rates while part of your budget may go towards targeting the wrong groups.

Demographic, psychographic, behavioral and geographic market segmentation are the four primary forms of market segmentation; however it’s worth adding extra segments such as technological to your marketing mix in order to identify new markets and tailor messaging and products accordingly. Technographic segmentation groups people based on how much technology they use – for instance early adopters as opposed to mainstream users of tech devices.

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