Market Segmentation is a process of dividing market into smaller and more defined categories. It divides the customers and audiences into small categories according to their location, interests and needs etc.

1. Market Segmentation, its
Types and Benefits

2. What is Market Segmentation?
 As it can be understood by the word segmentation
mean partitioning, market segmentation mean
divide your market in parts. Market Segmentation is
a process of dividing market into smaller and more
defined categories. It divides the customers and
audiences into small categories according to their
location, interests and needs etc.

3.  Market segmentation reduces the risks of ineffective
and unsuccessful market campaign. When marketers
divides the market by their characteristics and
personalize their strategy on the basis of that
information, it becomes easy for the marketers to
manage and it creates a high chances of success if
they can create a generic campaign and run it
successfully in all segments.

4. Benefits of Market Segmentation
 The importance of market segmentation is it makes
easy for the management to evaluate their
marketing strategy and its easier for them to target
there desired audience and achieve their business
goals. It enables you to divide your customers,
what’s their needs, how you can meet to their
needs using your products and services.

5. Create stronger marketing messages:
 When you know your audiences you can better
communicate your messages to them. You don’t
need to use any vague language. You can
communicate them in simple words that can affect
them and makes them to understand your
products.

6. Identify the most effective marketing
tactics:
 Dozens of marketing tactics are available now a
days, so it can be difficult for you to understand the
best to attract your ideal audience. Marketing
segmentations helps you to create the best strategy
to attract your desired customers. When you know
the audience you can easily make the best strategy
to target them.

7. Attract quality leads:
 When your market messages and strategies are
clear and targeted towards the right people, you
can draw the ideal prospects and can make the
serious customers into buyers.

8. Differentiate your brand from
competitors:
 When you know about you messages, values and
clear positon in market, this helps you to stand
string against your competitors. Instead of blending
with other brands, you can focus on the needs and
characteristics of the specific customer and
differentiate your brand from them.

9. Build deeper customer affinity:
When you know what your customer
want and what they need you can
communicate and create offering that
uniquely serve with them.

10. The Four Types of Market Segmentation
 Market segmentation is divided into
four parts on the basis of different
characteristics of customers. The four
bases of market segmentation are:
1. Demographic segmentation
2. Psychographic segmentation
3. Behavioral segmentation
4. Geographic segmentation

11. Demographic Segmentation:
 This is the most popular and most
commonly used type of
segmentation. It deals with the
statistical data of group of people.
 Examples:
 Age
 Gender
 Income
 Location

12.  Family Situation
 Annual Income
 Education
 Ethnicity
 As Demographic information is statistical so it is easy to find it using different
websites.
 A good example of business to consumer (B2C) demographic segmentation could
be a vehicle selling branded company, their targeted customers will be the one who
have high income.

13. Psychographic Segmentation:
 This segmentation categorizes
customers on the basis of their
personalities and characteristics.
 Examples:
 Personality traits
 Values
 Attitudes
 Interests
 Lifestyles
 Priorities

14.  Psychographic segmentation factors are bit
more difficult to understand then the
demographics because they are subjective.
They are not based on data, they need
proper research to classify them.

15. Behavioral Segmentation:
 While demographic and
psychographic segmentation focus
on who a customer is, behavioral
segmentation focuses on how the
customer acts.
 Examples:
 Purchasing habits
 Spending habits
 User status
 Brand interactions

16.  Behavioral segmentation requires that you must
know about your customer actions. These activities
may relate to how a customer interacts with your
brand or to other activities that happen away from
your brand.

17. Geographic Segmentation:
 This is the simplest type of market
segmentation. It categorizes the
customer according to their
geographical borders.
 Examples:
 ZIP code
 City /Country
 Radius around a certain location
 Climate
 Urban or rural

18.  An example of geographical segmentation is the
sweaters or jackets manufacturing companies
will look for the customer lives in the cold areas.
Car vehicle companies will look for the
customers that lives in warm climate areas
because cars mostly don’t work well in snowy
climate.