Market segmentation involves dividing a market into subgroups of consumers with similar needs, characteristics, or behaviors. It includes segmenting by geography, demographics, psychographics, and behaviors. Some key types of segmentation are geographic, which divides based on location; demographic, which divides based on attributes like age, income, gender; psychographic, which divides based on attitudes and lifestyles; and behavioral, which divides based on purchasing behaviors and decision making processes. Once segmented, companies can target specific groups and position their products to appeal most to the desired segments.

1. Market segmentation
and selection
• Market segmentation is a marketing
term that refers to aggregating
prospective buyers into groups or
segments with common needs and who
respond similarly to a marketing action.
Market segmentation enables
companies to target different categories
of consumers who perceive the full
value of certain products and services
differently from one another.

2. Market segmentation
• Market segmentation has several
steps you need to follow: Find your
customers according to what they
need and want. Analyse their usage
pattern, likes and dislikes, lifestyle,
and demographic. Note the growth
potential of your market as well as
your competition and the potential
risk they may represent to your
company.

3. Types of market
segmentation
• Types of market segmentation
• Geographic segmentation Geographic segmentation consists of
creating different groups of customers based on geographic
boundaries. The needs and interests of potential customers vary
according to their geographic location, climate and region, and
understanding this allows you to determine where to sell and
advertise a brand, as well as where to expand a business.
• Demographic segmentationDemographic segmentation consists
of dividing the market through different variables such as age,
gender, nationality, education level, family size, occupation,
income, etc. This is one of the most widely used forms of market
segmentation, since it is based on knowing how customers use
your products and services and how much they are willing to pay
for them.
• Psychographic segmentationPsychographic segmentation
consists of grouping the target audience based on their behavior,
lifestyle, attitudes and interests. To understand the target
audience, market research methods such as focus groups,
surveys, interviews and case studies can be successful in
compiling this type of conclusion.
• Behavioral segmentationBehavioral segmentation focuses on
specific reactions, i.e. the consumer behaviors, patterns and the
way customers go through their decision-making and purchasing
processes.The attitudes the public has towards your brand, the
way they use it and their awareness are examples of behavioral
segmentation.

4. Selection
• Offs among the multiple decision
criteria. The segment selection
procedure is a system of method-
ologies that identifies and selects
market segments and prod- uct
portfolios such that customer
preferences, organizational.

5. Service Market
segmentation
• Market segmentation is the process
of aggregating customers with similar
wants, needs, preferences, or buying
behaviour. Services Markets
Segmentation. Market segmentation
is the process of aggregating
customers with similar wants, needs,
preferences, or buying behaviour.

6. Targeting and
positioning
• Targeting
• Targeting is a follow on process from segmentation, and is
the process of actually determining the select markets and
planning the advertising media used to make the segment
appealing.[7] Targeting is a changing environment. Traditional
targeting practices of advertising through print and other
media sources, has made way for a social media presence,
leading a much more ‘web-connected’ focus.[8] Behavioural
targeting is a product of this change, and focuses on the
optimization of online advertising and data collection to send
a message to potential segments. This process is based
around the collection of ‘cookies’, small pieces of information
collected by a consumer’s browser and sold to businesses to
identify potential segments to appeal to.[7] For example,
someone consistently accessing photography based
searches is likely to have advertisements for camera sales
appear, due to the cookie information they deliver showing an
interest in this area.[9] Whilst targeting a market, there are
three different market coverage choices to consider –
undifferentiated, differentiated and niche marketing.[9]

7. Positioning
• Positioning is the final stage in the ‘STP’ process and focuses
on how the customer ultimately views your product or service
in comparison to your competitors and is important in gaining
a competitive advantage in the market.[9] Therefore,
customer perceptions have a huge impact on the brands
positioning in the market. There are three types of positioning
that are key in positioning the brand to a competitive
advantage; these are functional positioning, symbolic
positioning, and experiential positioning.[9] Functional
Positioning is focused on the aspects of the products or
services that can fulfill consumers’ needs or desires.
Symbolic Positioning is based on the characteristics of the
brand that fulfill customers’ self-esteem. Experiential
positioning is based around the characteristics of the brands
that stimulate the sensory or emotional connection with the
customers. A combination of the three is key to positioning
the brand at a competitive advantage to its immediate
competition.[6] Overall, positioning should provide better
value than competitors and communicate this differentiation
in an effective way to the consumer.[10]