What Are The Four Types Of Market Segmentation?

Market segmentation is splitting a broad market into smaller submarkets to target each of them differently and more effectively with your promotions and campaigns. Market segmentation is typically done by splitting a broad market into at least two segments and sometimes into four or even eight segments.

Segmentation helps you focus marketing efforts on specific groups of customers instead of trying to reach everyone with a one-size-fits-all message. In this article, we’ll cover the four main types of market segmentation in most industries: demographic, geographic, psychographic, and behavioral segmentation approaches.

Demographic Segmentation

A demographic segmentation is a market segmentation that divides the market into different groups based on age, gender, and other demographic factors. Demographic segmentation is the most widely used market segmentation because it’s easy and relatively inexpensive to implement.

The main advantage of this type of segmentation is that you can identify specific groups of people who are likely to be interested in your product or service. The main disadvantage is that it’s difficult to predict how these groups will respond to your product or service offering.

Behavioral Segmentation

In behavioral segmentation, a company identifies different groups of consumers with similar needs and wants by studying their buying patterns and behaviors. A behavioral segmentation strategy seeks to identify customer needs and wants that existing products or services still need to meet.

This type of market segmentation has become increasingly popular in recent years because companies now have access to large amounts of customer data that can be used for this purpose. The primary advantage of behavioral segmentation is that it helps companies develop new products or services that meet specific customer needs and wants better than existing offerings.

Geographic Segmentation

Geographic segmentation is a form of market segmentation that divides a large market into small regions, where each region has its unique characteristics and needs. Geographic segmentation is the most common form of segmentation used by businesses today.

In geographic segmentation, companies will identify the geographical areas where they have customers and divide them into groups based on common characteristics, such as climate or location. For example, if a company sells snow shovels, they may want to focus on selling their products in cold climates because the demand for snow shovels is higher during the winter than during other times of the year.

Psychographic Segmentation

Psychographic segmentation focuses on identifying consumers with similar values and lifestyles. This type of segmentation relies on information gathered from focus groups and surveys to target specific groups of consumers with similar interests and values. Psychographics can help companies target specific segments with marketing campaigns tailored to those groups’ needs and wants.


Market segmentation is simply the process of dividing a market into smaller sub-markets. Doing so can help organizations custom-tailor products and service offerings to a particular market segment instead of having one general strategy for all customers.

Sometimes, even within a market segment, companies might find that customer needs to differ depending on various factors like demographics, geographic location, or seasonality, each of which can be used as a basis for segmenting their market.

Social Media Marketing by Glen Huff

Hi, I'm Glen Huff!

Blogger, marketer, and coffee addict. I constantly have my head involved with the inner workings of the internet. I have a love-hate relationship with Social Media, SEO, PHP, and algorithms. With the industry constantly changing, it's hard to know what works.

This blog aims to take my 13 years of marketing experience and give you a clear path to success. My passion is helping business owners thrive online. I hope this blog becomes a valuable resource to you. May your funnels and social media campaigns shower you with leads.

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