As you might now, marketing segmentation is the process of dividing a particular market into smaller segments having similar needs or characteristics.
And if you a marketer, surely you think of the key market segment examples such as behavioral, demographic and geographic types of segmentation.
However, there are much more examples that can help you define and break down your target market into smaller and much more manageable groups.
On this page:
- What is market segmentation?
- 51 examples to help you identify your target audience and groups. Infographic in PDG for free download.
Market Segmenting allows you to better understand your buyer personas and to make more customer-centric marketing efforts. It leads to more successful products/services that open the door to your business grows.
Here are listed examples of market segments to give you ideas for creating more customer-focused advertising and experience.
Geographic Segmentation
The definition of geographic segmentation includes gathering and analyzing information according to the physical location of the target customers.
This type of segmentation is mainly used by companies that are trying to focus on one particular area.
For example, many businesses might choose to position their brands in particular countries, but not in others.
Here are some examples of geographic segmentation:
- State (California, Colorado, Texas)
- Country (USA, Canada, Australia, India, Germany)
- College (The University of Illinois, The New School, Santa Monica College)
- County (Los Angeles, Butte County, Calaveras County)
- Continent (Europe, America, Africa, Asia)
- Community (San Marcos Youth Master Plan)
- Urban/rural
- North/South region
- Warm/Cold areas
- High elevation/low-elevation areas
Demographic segmentation
Demographic segmentation is the most common type of market segmenting as it is clearly identifiable. Demographic segmentation involves grouping according to race, age, gender, family size, and more.
For example, some businesses are targeted only to women, others only to men.
One of the main benefits of demographic market segmentation is that the information you need is easily accessible and available for you.
Here are some key demographic market segment examples:
- Age (21-29, 30-44, 44-59)
- Race (Asian, Native Hawaiian)
- Religion (Muslin, Buddhist, Christian)
- Gender (Women, Men)
- Family size (Couple only, 3 family members, 4 family members)
- Income (till 40 000 USD, 40 – 60 000 USD, 60-100 000 USD)
- Education (High school, University, Vocational)
- Ethnicity (Hispanic, Asian)
- Housing style (Ranch House, Modernist, Art Deco)
- Marital status (Married, Single, Widowed)
- Occupation (Blue Collar, White Collar, Trade)
- Socio-economic group (Higher Managerial, Intermediate Managerial, Administrative personal, Professional)
Psychographic or Lifestyle Segmentation
Psychographic or Lifestyle Segmentation as the name implies, breaks up the target customers into subgroups categories by personality, interests and other factors.
This is a powerful type of segmentation to attract groups that otherwise seem very heterogeneous. In fact, Lifestyle segmentation brakes up the target market into groups based on not-so-visible characteristics such as expectations.
Once your lifestyle groups are identified, more options for products can be offered to them.
The best advantage here is that the groups of customers will become more loyal to your brand as you are able to meet their need in a better way.
Key lifestyle market segment examples:
- Class (Working class family, Middle class, Upper-class family)
- Personality (Ongoing, Creative, Serious)
- Attitudes (Hope, Optimism, Realism)
- Lifestyles (Healthy lifestyle, Gluten-free lifestyle)
- Special character traits (Religious, Adventurous)
- Expectations (Explicit, Implicit expectations, Technological expectations)
- Opinions (Customers that rate the product with 3 stars, 4 stars, 5 stars)
- Hobbies (Reading, Horse Ridding, Footballs, Walking)
- Interests (Interested in food, technology, fashion)
Behavioral
Behavioral segmentation groups the market by the way the consumer responds to, know or use a product. It answers the questions such as: how the customers respond to price and promotion.
You know that consumer decision making is influenced by his behavior and that is how the behavioral segments are targeted.
Examples of behavioral segments are:
- Occasion (Birthday, Anniversary, Graduating)
- Bayer Journey Stage (Awareness, Consideration, Decision Stage)
- Brand knowledge (None, Some, Strong Knowledge)
- Types of loyalty (No Loyalty, Inertia Loyalty, Latent Loyalty, Premium Loyalty)
- Price sensitivity (Sensitive to price changes, Not sensitive)
- Shopping style (Avoid shopping, Enjoy shopping)
- Usage rate (Heavy, Light)
- User status (Never, Occasional, Regular)
As with all the above types of market segmentation, the purpose of behavioral one is to help you understand better who your target customer truly is.
However, the behavioral market grouping goes beyond defining the stereotypical characteristics of the customers. It shows you their predisposition to spend money.
Media Segmentation
While media segmentation is not so common, it is becoming more and more important due to the variety of online media possibilities and opportunities nowadays.
Different media tend to reach different audiences through different types of messages. This is the basis of media segmentation.
Do you know where your customers like to spend their time the most? Facebook, Twiter or watching TV? The answer to this question is the core of your media segmentation process.
Here are some key media market segment examples:
- TV (cable TV, network TV, satellite TV)
- Radio (satellite radio use, internet radio, local radio, national radio)
- Social Media (Facebook, Twitter, Instagram)
- Newspapers (local newspaper, national newspaper, consumer magazine)
- Internet search engine use (Google, Bing, Yahoo)
Time segmentation
Time segmentation is also a less common type of market segmentation but can be surprisingly effective. Some stores prefer to have longer open time than others.
And what about the products that are sold only at certain times of the year such as Christmas cards and Christmas trees. Baseball is played in the summer. Some stores sometimes offer midnight promotional events.
Time segmentation can give you unexpected opportunities for business growth, so think if there is a place for this type of market segmentation in your firm.
Examples:
- Seasons (Winter, Spring, Summer, Autumn)
- Special events (Black Friday)
- Holidays (Thanksgiving, Halloween)
Benefit Segmentation
Benefit segmentation is an interesting type of segmentation full of opportunities. It is based on the specific benefits a group of customers is searching within a product.
Benefit segmentation is breaking up your target market based on the value or advantage consumers perceive that they receive from a product. Different grades of the same product can be offered to different market segments.
Benefit market segment examples:
- Convenience (Without buying effort, With some buying efforts)
- Customer service (Expected, Desired, Basic customer service)
- Special features (high speed, easy access)
- Quality (High quality, Middle quality, Low quality)
Commonly, market segmentation takes place after a market research and both can benefit your business in many ways. Focus on the customers, increase in competitiveness, market expansion, cost reduction, efficient use of resources are just a few of the advantages that your business can get.
But the most crucial advantages are that you are able to understand and cover better your customer needs and to go on the right way leading to your business grow.
Infographic in PDF For Free Download: 51 Market Segment Examples
