What are the four types of market segmentation?
Posted: Sun Jan 19, 2025 4:34 am
Effective segmentation isn't a limitation; it's a way to prioritize and focus your marketing and sales resources on the customers most ready to buy from you now.
What is market segmentation?
Market segmentation is a strategy for organizing your potential (and existing) customers, grouping them into categories based on common traits to define your target market. This smaller target market allows your marketing and sales teams to deliver the best experience to the most common segments of your audience. This target audience should serve as a profile of your most valuable prospect and determine the strategy you build to reach that customer segment.
What does this look like for everyday business? Let's say how does telemarketing work? you own a local sporting goods store and want to develop a new marketing strategy. You have a loyal customer base but only a few new faces, so you want to build a digital presence and market your store online. Using the data you already have from a solid customer base, you can begin to analyze market segments.
The four main types of market segmentation are:
Demographic segmentation
Behavioural segmentation
Psychographic segmentation
Geographic segmentation
Let's take a look at them:
1. Demographic segmentation
Demographic segmentation, the most common type of market segmentation, groups people based on characteristics such as age, ethnicity, gender identity, income, family size, and occupation.
Your local sporting goods store may find a large number of families buying youth soccer mats each fall, or a higher success rate selling bicycles to 18-34 year olds.
What is market segmentation?
Market segmentation is a strategy for organizing your potential (and existing) customers, grouping them into categories based on common traits to define your target market. This smaller target market allows your marketing and sales teams to deliver the best experience to the most common segments of your audience. This target audience should serve as a profile of your most valuable prospect and determine the strategy you build to reach that customer segment.
What does this look like for everyday business? Let's say how does telemarketing work? you own a local sporting goods store and want to develop a new marketing strategy. You have a loyal customer base but only a few new faces, so you want to build a digital presence and market your store online. Using the data you already have from a solid customer base, you can begin to analyze market segments.
The four main types of market segmentation are:
Demographic segmentation
Behavioural segmentation
Psychographic segmentation
Geographic segmentation
Let's take a look at them:
1. Demographic segmentation
Demographic segmentation, the most common type of market segmentation, groups people based on characteristics such as age, ethnicity, gender identity, income, family size, and occupation.
Your local sporting goods store may find a large number of families buying youth soccer mats each fall, or a higher success rate selling bicycles to 18-34 year olds.