What is Marketing Segmentation and what are its Types

It is known as a course of distributing the market of possible customers into dissimilar groups and sections on the foundation of firm features. The participants of these groups share comparable characteristics and typically have one or more than one facet common between them.

There are numerous causes as to why market segmentation is done. One of the main and foremost reasons marketers segment market is because they can make custom marketing amalgamate for each section and accommodate them for that reason.

The idea of market segmentation was invented by Wendell R. Smith who in his article titled “Product Differentiation and Market Segmentation as Alternative Marketing Strategies” noticed “many cases of segmentation” in the year 1956.

Nowadays market segmentation subsists essentially to resolve one main issue of marketers; more adaptations. The concept of marketing segmentation is really important for an MBA student. By enrolling yourself in online mba in Canada you would be able to have some command over it. More transformation is possible through modified marketing campaigns which need marketers to segment market and draft better product and communication tactics rendering to requirements of the sector.

Nature of Market Segmentation

Market segment requires to be standardized. There should be something common among the people in the segment that the marketer can profit from on. Marketers are supposed to check that diverse segments have changed characteristic features which make them exclusive. But segmenting needs more than just parallel features. Marketers should also make sure that the individuals of the section react in a related way to the stimulus. That is, the division must have a similar kind of response to the marketing activities being pitched.

Types of Marketing Segmentation

Following are some types of marketing segmentation:

  • Geographic Segmentation

Geographic segmentation splits the market on the base of geography. This kind of market segmentation is significant for marketers as people belonging to diverse regions may have diverse necessities. For instance, water might be rare in some districts which expand the demand for mineral water but, at the same time, it might be in profusion in other areas where the need for the same is very less. People who belong to dissimilar areas may have diverse motives to utilize the identical product as well. It aids marketer draft adapted marketing operations for everyone.

  • Demographic Segmentation

This one distributes the market on the base of demographic variables such as age, gender, marital status, family size, income, religion, race, occupation, nationality, etc. This is known as one of the most common practices of segmentation among marketers. Demographic segmentation is seen almost in every business including automobiles, beauty products, mobile phones, apparels, etc. and is set on evidence that the consumers’ purchasing behavior is enormously influenced by their demographics.

  • Behavioral Segmentation

The market is also divided on the basis of the audience’s behavior, utilization, preference, and decision making. They are normally divided based on their knowledge of the product and utilization of that product. It is supposed that the knowledge of the product and its use affects the purchasing decision of a person. The audience can be divided into the following:

  • Those who know about the product,
  • Those who don’t know about the product,
  • Ex-users,
  • Potential users,
  • Current users,
  • First time users, etc

People can be categorized as brand loyal, brand-neutral or contestant loyal. They can also be considered conferring to their utilization. Here you can consider a sports person who may choose an energy drink as basic and a not so sporty one may go for it just because he enjoys the taste.

  • Psychographic Segmentation

Psychographic Segmentation distributes the audience on the base of their disposition, lifestyle, and outlook. This one works on a principle that purchaser buying behavior can be inclined by his nature and lifestyle. There is no doubt about it that personality is the amalgamation of features that form an individual’s unique character and contains habits, traits, attitude, temper, etc. Lifestyle is how a person lives his life.

Personality and lifestyle encourage the purchasing decision and conducts of a person to a great degree. A person having an extravagant lifestyle may contemplate having an air conditioner in every room as a necessity; while on the other hand, a person who is living in the same city but having a traditionalist lifestyle may consider it as a luxury.

  • Benefit Segmentation

The last one is dividing your market based upon the observed value, advantage, or advantage customers observe that they receive from a product or service. You can part the market depends upon quality, performance, customer service, special features, or many other profits. Often, diverse grades of similar product are presented to dissimilar market sectors. There are many diverse businesses that utilize this kind of segmentation, including the auto, clothing, furniture, and purchaser electronics industries.


Marketing segmentation is the best way to deal customers as well as your organization according to set criteria. By applying it properly, administrations would be able to cope with many marketing decisions and make preferable choices.