Examples of market segmentation

Market segmentation is an integral part of the company’s marketing strategy. It is the process of separating a large target market into smaller and more homogeneous groups of customers that you can deal with more efficiently. Both consumer-oriented and business-oriented companies must segment their customers using one of several common approaches.


Demographic market segmentation is one of the most common approaches to segment markets. With this strategy, a company simply divides the large market into groups based on several defined attributes. Age, race, gender, marital status, occupation, education and income are among the attributes of demographic segmentation. As a simple example of use, a company that sells feminine hygiene products will include “woman” in its description of its primary market segment.


Geographic segmentation is used in companies that sell specific products or services to a certain community, state, region, country or group of countries. Local businesses generally do not make a profit by paying for national or international advertising. Nationally operating companies can save by sending the same market messages to a national audience through television, radio, magazines or newspaper ads. Global businesses decide to keep a universal or personalized message for each market in any country.


Psychographic or lifestyle segmentation has become more common with companies that seek to identify with consumers based on interests and activities rather than demographics. As an example of this kind of strategic benefits, consider the lifestyle of an adventurer of nature. Camping enthusiasts, for example, usually have a few consistent demographic characteristics. Those who camp are a diverse group. Therefore, marketers will try to focus on a segment of nature enthusiasts or campers for new camping equipment through outdoor programs or magazines.


Behaviour segmentation is based on user behaviour, including usage patterns, price sensitivity, brand loyalty and profit-seeking. Some may use the product daily, while others may use it weekly or monthly. Those who earn large incomes may have a greater interest in high-quality models versus low-cost ones. This can attract the supplier to focus on high-quality products and services towards a group and oriented to the highest value by offering these products to those who have low incomes or are more budget-conscious.

Business segmentation

Segmenting customers by business usually comes up with other types such as geographic, consumer type and behavior-based strategies. Geographic business segmentation is similar to customer segmentation. The type of customer segmentation can include the size of the business or its nature. Banks, for example, have different products for small businesses. the biggest Behavior segmentation is based on the repetition of customer loyalty against users at once.