Four Ways to Segment Your Consumer Market

Four Ways to Segment Your Consumer Market

Market segmentation allows you to divide your target market, or consumer base, into smaller, more accessible groups.

“By understanding your market segments, you can leverage this targeting in product, sales, and marketing strategies,” according to Qualtrics.” Market segments can power your product development cycles by informing how you create product offerings for different segments like men vs. women or high income vs. low income.”

You can create market segments by exploring the following types of segmentation.

Geographic

In geographic segmentation, you consider your target audience’s physical location: the city and country they reside in, what language is spoken, and even the density and population of the area. Even climate is a significant factor.

For example, North Face, an active wear and outdoor sports gear brand, may choose to invest less in advertisements for their cold winter gear in Miami than in Chicago.

Demographic

Demographic segmentation is as easy as it sounds: age, gender, income, education, etc. This also includes a person’s social status, what life stage they’re in, and even what they do for a living.

Luxury car manufacturers, like Mercedes Benz, may use this segmentation type to gear marketing efforts towards individuals who meet a certain income level and can afford the vehicles they sell.

Psychographic

Lifestyle, values and attitudes are some of the factors studied in psychographic market segmentation. Essentially, it’s the things people like and why they like them.

A bohemian clothing brand, like Spiritual Gangster, may choose to analyze a target audience that is inspired by yoga and ancient wisdom. Implementing these affinities in a paid Facebook campaign could help Spiritual Gangster reach more potential customers.

Behavioral

Lastly, behavioral segmentation considers factors like usage, purchase intent, buyer stage and user status.

As an example, a boat manufacturer could utilize buyer stage to pace touchpoints with consumers. Because large boats are a costly investment, a manufacturer may way to capture its target audience’s attention at specific points in the buyer’s decision-making process.

Once you determine your segments, you’ll want to be sure they’ll be useful. A good segmentation analysis should be measurable, accessible and actionable.