MARKETING
SEGMENTATION
OBJECTIVES:
At the end of the lesson/discussion
students are expected to:
• Define what is Market Segmentation
• Understand the importance and
purpose of Marketing segmentation
• Must know what are the benefits,
types, and steps on how to create
Market Segmentation Strategy
Market Segmentation
• is the process of dividing a target
market into smaller and more defined
categories.
• It segments customers and
audiences into groups that share
similar characteristics such as
demographics, interests, needs, or
location.
The importance of market
Segmentation is that it makes it
easier to focus marketing efforts
and resources on reaching the
most valuable audiences and
achieving business goals.
Market Segmentation allows you to get
to know your customers, identify what
is need in your market Segment, and
determine how you can best meet
those needs with your product or
service. This helps you design and
execute better marketing strategies
from top to bottom.
• Market Segmentation
8 BENEFITS OF MARKET
• • is the process of dividing a target market into smaller and
more defined categories.
• • It segments SEGMENTATION
customers and audiences into groups that share
similar characteristics such as demographics, interests, needs,
or location.
1.Create stronger marketing messages
• When you know whom you’re
talking to, you can develop stronger
marketing messages.
2.Identify the most effective
marketing tactics
• with dozens of •when you know the
marketing tactics audience you are
available, it can be targeting, you can
difficult to know determine the best
what will attract you solutions and methods
ideal audience for reaching them.
3. Design hyper-target ads
• on digitals ad services, you can target
audiences by their age, location,
purchasing habits, interests, and more
4.Attract(and convert) quality
leads
• when your marketing messages
are clear, direct, and targeted they
attract the right people.
5. Differentiate your brand from
competitors
• being more specific about your value
propositions and messaging also allows
you to stand out from competitors.
6. Build deeper customer affinity
• when you know what your customers
wants and needs, you can deliver and
communicate offerings that uniquely
serve and resonate with them
7. Identify niche market opportunities
• Niche marketing is the process of
identifying segments of industries and
verticals that have a large audience that
can be served in new ways
8. Stay focused
• targeting in marketing keeps your
messaging and marketing objectives on
track.
• it helps you identify new marketing
opportunities and avoid distractions
that will lead you away from your target
market.
THE FOUR TYPES OF MARKET
SEGMENTATION
The Four bases of Market
Segmentations are:
•Demographic Segmentations
• Psychographic Segmentations
• Behavioral Segmentations
• Geographical Segmentation
Demographic Segmentations
• is one of the most popular and commonly
used types of market segmentation.
• It also refers to statistical data about a
group of people.
Demographic Market
Segmentation Examples:
• Age • Family Situation
• Gender • Annual Income
• Income •Education
• Location • Ethnicity
Psychographic Segmentation
• it categorizes audiences and
customers by factors that relate to
their personalities and characters
Psychographic Market
Segmentation Examples:
• Personality traits •Psychological
•Values influences
•attitudes • Subconscious and
• Interests conscious beliefs
• Lifestyles • Motivations
• Priorities
Psychographic segmentations
factors are slightly more difficult to
identify than demographics because
they are subjective. They are not
data-focused and require research
to uncover and understand.
Behavioral Segmentation
• while demographic and
psychographic segmentations focus
on who a customer is, behavioral
Segmentation focuses on how the
customer acts.
Behavioral Market
Segmentation
Examples:
• Purchasing habits
• Spending habits
• User status
• Brand interactions
Behavioral segmentations requires
you to know about your customer’s
actions. These activities may relate
to how a customer interacts with
your brand or to other activities that
happen away from your brand.
Geographic Segmentation
• is the simplest type of market
segmentation. It categorizes customers
who have purchased a high-end vehicle
in the past three years.
Geographic Market
Segmentation Examples:
• Zip code • Radius around a
• City certain location
• Country • Climate
• Urban Or Rural
How to create a Market Segmentation
Strategy
1. Analyze your existing customers
• If you have existing customers, start
your market segmentations process by
performing an audience analysis.
• An audience analysis allows you to
learn about your customer’s and
begin to identify trend that exist
within your current customer base.
• Interview your customers
• Go right to the source and conduct
interviews with existing customers,
past customers, ideal customers, and
prospects and leads.
• Interview your sales team
• If you have a sales team that spends
a lot of time working with customers,
use them as a resource.
• Refer to your business data
•Your business likely has loads that
spends a lot of time working with
customers. Use your customer
relationship management tools and point-
of-sale systems to find trends related to
behavioral segmentations.
• Use your website analytics
•Your website also has data that
can help you learn about your
audience.
• Research audience geography
•get details for geographic
segmentations and find out where your
audience lives using site overview tool.
2. Create a buyer persona for your
ideal customers.
• Once you complete an audience
analysis, you’ll have a good idea about
who your current customers are.
3. Identify market segment
opportunities
• once you have a • a market
buyer persona that segment
describes your ideal opportunity is a
customer, start trend that can
looking for market drive new
segment marketing tactics
opportunities. or offerings.
4. Research your potential segment
• before you launch • Research to see
a marketing what competition
campaign for a new exists and if
segment of your audiences are
market, verify that interested in your
it is a good option. new market.
5. Test and iterate
• once you find a • create a few
new market you campaigns to test
want to explore, your idea.
don’t go all in
just yet.
