There are four key types of market segmentation: demographic, geographic, psychographic, and behavioral. Each segment will have specific wants and needs you can meet once research is done. Using segmentation means more efficient resource use and informed decisions.
Examples of Market Segmentation
- Demographic
- Geographic
- Psychographic
- Behavioral
Social media has enabled organizations to leverage psychographic segmentation more effectively, as people signal their interests openly on these platforms. Market segmentation seeks to identify targeted groups of consumers to tailor products and branding attractively. Markets can be segmented to minimize risk and can also increase a company’s reach and help discover new products or services.
Benefits of Market Segmentation
There are many reasons to segment markets:
- Marketers can create a custom marketing mix for each segment to cater accordingly.
- Segmentation enables the company to target marketing more effectively, resulting in greater customer satisfaction and profitability.