What are the different types of market segmentation?
Posted: Thu Dec 26, 2024 6:56 am
Are you creating content and launching campaigns but still not getting leads? Maybe you're targeting the wrong people. And this is a common mistake sales and marketing teams make.
Targeting the wrong audience or targeting everyone on your list results in generic marketing campaigns . And no one likes interacting with generic content. The solution? Market segmentation.
But what is market segmentation? Read on to find out. This blog discusses market segmentation, its types, and how it can benefit your business.
What is market segmentation?
Market segmentation categorizes your target market/audience into accessible groups based on their demographics, shared interests, behavior, etc.
The goal is to bring together similar people and create customized sales and marketing strategies for each group.
Once market segmentation cambodia telegram mobile phone number list is established , you can create content specifically targeted at a particular group of people. This way, they are more likely to engage with your content, which translates into more quality leads and better conversions.
customer-segmentation-marketing-strategies
What are the types of market segmentation?
Here are the common types of market segmentation.
Demographic segmentation
Demographic segmentation divides the target audience based on their demographic characteristics, i.e. age, gender, income, race, occupation, etc. This segmentation approach is based on the idea that people with similar demographic characteristics have similar needs.
Practical example: Gaming console campaigns are often targeted at young men with disposable income.
Geographic segmentation
Geographic segmentation is technically a subpart of demographic segmentation that divides the audience based on their geographic location. According to this segmentation, people living in a certain place have similar interests or needs.
Practical example: A company selling snowball launchers will target people living in countries like Russia, Canada, or the US and not in some tropical country like India or Haiti.
Behavioral segmentation
As the name suggests, behavioral segmentation divides your audience based on how they behave. For example, it considers their decision-making patterns, such as purchase frequency, consumption, usage, etc. Under this type of segmentation, a customer’s behavior or habits indicate how they will purchase in the future.
Practical example: If a customer has been loyal to a company, the company might try to sell them more based on their behavior (loyalty).
Firmographic segmentation
This segmentation works specifically for B2B clients. It focuses on the organization a person works for, the number of employees, current software subscriptions, revenue, etc.
Practical example: Let’s say a company sells lead generation services to large companies. Now, you can use firmographic segmentation to find large companies with more than 500 employees and more than €10 million in revenue, without wasting time targeting every company.
Psychographic segmentation
Although it may seem similar to behavioral segmentation, psychographic segmentation is different. Instead of considering a person’s actions, psychographic segmentation takes into account their lifestyle, social status, and personality.
Practical example: Let’s take a luxury jewelry brand as an example. The company will target people who can afford expensive jewelry, such as business-class people, actors, artists, or other people with high social status.
Targeting the wrong audience or targeting everyone on your list results in generic marketing campaigns . And no one likes interacting with generic content. The solution? Market segmentation.
But what is market segmentation? Read on to find out. This blog discusses market segmentation, its types, and how it can benefit your business.
What is market segmentation?
Market segmentation categorizes your target market/audience into accessible groups based on their demographics, shared interests, behavior, etc.
The goal is to bring together similar people and create customized sales and marketing strategies for each group.
Once market segmentation cambodia telegram mobile phone number list is established , you can create content specifically targeted at a particular group of people. This way, they are more likely to engage with your content, which translates into more quality leads and better conversions.
customer-segmentation-marketing-strategies
What are the types of market segmentation?
Here are the common types of market segmentation.
Demographic segmentation
Demographic segmentation divides the target audience based on their demographic characteristics, i.e. age, gender, income, race, occupation, etc. This segmentation approach is based on the idea that people with similar demographic characteristics have similar needs.
Practical example: Gaming console campaigns are often targeted at young men with disposable income.
Geographic segmentation
Geographic segmentation is technically a subpart of demographic segmentation that divides the audience based on their geographic location. According to this segmentation, people living in a certain place have similar interests or needs.
Practical example: A company selling snowball launchers will target people living in countries like Russia, Canada, or the US and not in some tropical country like India or Haiti.
Behavioral segmentation
As the name suggests, behavioral segmentation divides your audience based on how they behave. For example, it considers their decision-making patterns, such as purchase frequency, consumption, usage, etc. Under this type of segmentation, a customer’s behavior or habits indicate how they will purchase in the future.
Practical example: If a customer has been loyal to a company, the company might try to sell them more based on their behavior (loyalty).
Firmographic segmentation
This segmentation works specifically for B2B clients. It focuses on the organization a person works for, the number of employees, current software subscriptions, revenue, etc.
Practical example: Let’s say a company sells lead generation services to large companies. Now, you can use firmographic segmentation to find large companies with more than 500 employees and more than €10 million in revenue, without wasting time targeting every company.
Psychographic segmentation
Although it may seem similar to behavioral segmentation, psychographic segmentation is different. Instead of considering a person’s actions, psychographic segmentation takes into account their lifestyle, social status, and personality.
Practical example: Let’s take a luxury jewelry brand as an example. The company will target people who can afford expensive jewelry, such as business-class people, actors, artists, or other people with high social status.