Market segmentation is the process of dividing a market into distinct groups that share common characteristics relevant to marketing. There are four main types of market segmentation: geographic, demographic, psychographic, and behavioral. By dividing consumers into these categories, companies can tailor their products, pricing, placement, and promotion to specific segments in order to appeal to them more effectively and increase sales. For example, a company may develop different marketing strategies for segments divided by age, income level, location, or other distinguishing factors.

1. Market Segmentation
Brief overview

2. What is market segmentation
Market Segmentation is used to describe the process by which audiences are
separated according to common characteristics that they may share. This makes it
easier for companies to sell their products more efficiently.

3. Types of Market Segmentation
There are 4 types of market segmentation, Demographic, Psychographic,
Behavioral, and Geographic.

4. Geographic Segmentation
Geographic segmentation can be grouped into general location and how to market
to a specific place. Some constraints could be:
Zip code, City, Country, Population Density, Time Zone, Climate, and Dominant
Language in the area.

5. Demographic Segmentation
This is the strategy that people use when they want to discern different target
groups by census characteristics. These could potentially include:
Age, Gender, Income, Race, Religion, Occupation, Family Size, Ethnicity

6. Psychographic Segmentation
Based on shared internal and psychological characteristics, the market can be
separated and can make it easier for companies to target a specific group of
individuals.
Some constraints include: Values, Goals, Needs, Hobbies, Interests

7. Behavioral Segmentation
Means exactly what it says. This segmentation is used to separate the market
based on behavioral tendencies among customers.
Examples include: Purchasing habits, Customer Loyalty, Brand Interactions

8. Why companies use market segmentation
By dividing consumers into categories like we discussed earlier, companies can
change up their products and their marketing techniques for specific groups of
people so they can appeal to them more effectively.
They can tailor all their products and marketing to one group of people which then
collectively adds up to more sales.

9. How companies specifically use market segmentation
We talked about why, but it is important to establish how they implement market
segmentation. The way they implement segmentation depends on the product, but
normally, there is differentiated marketing for each group, such as with Whole
Foods. Whole Foods is not marketing to people who have below-average income.
Rather, they target the more wealthy and affluent with more natural foods.

10. Companies that may use market segmentation
- Beauty product companies
- Hair product companies
- Car companies
- Clothing manufacturers
- Media
- TV