What is Segmentation?

Segmentation is the process of dividing a target market into distinct groups of consumers who share similar characteristics. It enables marketers to tailor their message to the specific needs and wants of each segment. Segmentation helps marketers understand their target market by breaking down the consumer population into smaller, more manageable chunks.

Why do Marketers Use Segmentation?

Segmentation enables marketers to focus their efforts on the most profitable segments of the market. Most importantly, segmentation helps marketers identify which segments are most likely to respond positively to their campaigns. By segmenting the market, marketers can develop messages that are more relevant and appealing to their target audience.

Types of Segmentation

The type of segmentation used will depend on the product, the market, and the goals of the campaign. Here are some of the most common forms of segmentation:

  • Demographic: Age, gender, income, occupation, education, etc.
  • Psychographic: Lifestyle, values, interests, personality, etc.
  • Geographic: Region, city, state, country, climate, etc.
  • Behavioral: Product usage, purchase frequency, loyalty, etc.

Examples of Segmentation

To illustrate how segmentation can be used, consider the example of a company that sells outdoor gear. The company could segment its market based on:

  • Demographic: Male, age 18-25
  • Psychographic: Adventure seekers, risk takers
  • Geographic: West coast of the United States
  • Behavioral: Frequent buyers of outdoor gear

By segmenting the market in this way, the company can create a more targeted and effective message that speaks directly to the needs and wants of their target audience.


Segmentation is a powerful tool that can help marketers reach their target audience more effectively. By segmenting the market, marketers can create more relevant and appealing messages that resonate with their target audience.