What is Segmentation in Marketing and How Do You Do It?

There are different marketing strategies, and segmentation is one of the main ones. Segmentation involves dividing your audience into smaller groups based on different factors. The best thing about segmentation is that it allows you to make specific decisions based on your target group. It also allows you to develop a marketing plan to efficiently connect with your target customers, who are more likely to purchase your services or products. Therefore, it minimizes the wastage of marketing efforts to non-effective groups. There are different ways of segmenting your markets, and we will discuss four of these ways.


This is a common way of segmenting the market. You divide the customers based on demographic qualities like gender, age, education, marital status, race, occupation, income, etc. These identifiers make it easy if you have customer profiles. For instance, you can create a marketing plan for people in their 20s and 40s if the products or services you produce suit this age. For instance, you can direct your marketing based on gender if you produce cosmetic services. However, segmenting based on demographics will be effective if the target audience is not that diverse. The main point here is to develop promotions and marketing plans that appeal to these customers based on the demographic qualities and use the right media to do so.


Another method of segmenting the market is by lifestyle. Lifestyle segmentation has become popular with businesses now focusing on the interests and activities of their consumers. What does your audience like to do.? This includes their hobbies and interests. For example, consider a company that sells camping or fishing materials and equipment. The segmentation cannot work well based on location because people worldwide appreciate outdoor activities. Therefore, you can use aspects like magazines, linear tv advertising, and social media to capture a wide group. These platforms create a lucrative and efficient way of communicating with your target group. The main idea of lifestyle segmentation is to develop messages in the right media by discovering shared activities and interests in this group of people.


A business with different types of customers will benefit from behavior segmentation. This entails using a product or service based on usage, loyalty, the benefits they are looking for, and price sensitivity. Some customers use a product daily, while others use it weekly or monthly. Others look for the same product within a specific price range. These details help you formulate a marketing plan to cater to these needs. Therefore, through this division, you can encourage your existing customers to buy more, convince prospects to buy, and get back your previous customers. Your marketing campaigns will depend on the level of usage of the consumers. Tell your customers how they gain from using your products and services for low-level usage.

On the other hand, offer loyalty rewards for heavy users to keep them committed to buying from you. A loyalty reward program also encourages your loyal customers to buy more. In addition to usage, the price also plays an integral role in this segment. You will develop a marketing plan based on the target market income level to determine how people behave. For instance, if your target group is budget-conscious, your strategy should insist on price and value.


If your company has a large audience concentrated in one area, it can be easy and effective to use geographical segmentation based on location. This strategy is the best for companies with local customers. For instance, a local food company would benefit from marketing through flyers, TV advertising, and newspapers to reach its local customers. It helps create brand awareness in the market. Therefore, dividing your market based on geographical area is important if you produce or sell products or services that are specific to a community, country, or state. If you operate across the nation, you can use channels like radio, national magazines, newspaper ads, or television to reach your national prospects.


Segmenting the market is a vital approach you should adopt in your marketing plan. It helps break down your markets into smaller and specific groups to enable you to deliver specific campaigns. The segmentation you choose will depend on your business size and nature. For instance, banks have different segmentations compared to manufacturing businesses. Therefore, when segmenting your markets, choose one or two best approaches based on your general customer base. Evaluate your customers to see the best segmentation to pick to improve the effectiveness of your marketing campaigns and reduce wastage on the wrong population.

John Peter

John is a professional technology blogger who has been doing blogging for the last 5 years. He loves to write & share content about web development, software programming, digital marketing, SEO, social media, tech gadgets, etc.