Market segmentation: What it is, Types & Examples | QuestionPro

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In this article, we will learn what market segmentation is and how it allows you to correctly direct your marketing efforts to the right audience to ensure the success of your business. 

Before going deeper, we will define what market segmentation is and the benefits of this method that helps you to know your target audience. 

What is market segmentation?

Market segmentation is a process that consists of sectioning the target market into smaller groups that share similar characteristics, such as age, income, personality traits, behavior, interests, needs or location. 

These segments can be used to optimize products, marketing, advertising and sales efforts.

Segmentation allows brands to create strategies for different types of consumers, depending on how they perceive the overall value of certain products and services. In this way they can introduce a more personalized message with the certainty that it will be received successfully. 

Now that you know what market segmentation is, let’s talk about the different types that exist.

Types Of Market Segmentation

There are 4 types of market segmentation. Below, we describe each of them: 

types of market segmentation

Geographic segmentation 

Geographic segmentation consists of creating different groups of customers based on geographic boundaries. 

The needs and interests of potential customers vary according to their geographic location, climate and region, and understanding this allows you to determine where to sell and advertise a brand, as well as where to expand a business.

Demographic segmentation

Demographic segmentation consists of dividing the market through different variables such as age, gender, nationality, education level, family size, occupation, income, etc. 

This is one of the most widely used forms of market segmentation, since it is based on knowing how customers use your products and services and how much they are willing to pay for them. 

Psychographic segmentation

Psychographic segmentation consists of grouping the target audience based on their behavior, lifestyle, attitudes and interests. 

To understand the target audience, market research methods such as focus groups, surveys, interviews and case studies can be successful in compiling this type of conclusion.

Behavioral segmentation

Behavioral segmentation focuses on specific reactions, i.e. the consumer behaviors, patterns and the way customers go through their decision-making and purchasing processes.

The attitudes the public has towards your brand, the way they use it and their awareness are examples of behavioral segmentation. Collecting this type of data is similar to the way you would find psychographic data. This allows marketers to develop a more targeted approach.

Market segmentation objectives

There are different market segmentation objectives. Here we tell you what each of them are:

  • Product: Creating successful products is one of the main objectives of organizations and one of the reasons why they conduct market research. This allows you to add the right features to your product and will also help you reduce costs to meet the needs of your target audience.
  • Price: Another objective of market segmentation is to establish the right price for your products. Identifying which is the public that will be willing to pay for it. 
  • Promotion: It helps you to target the members of each segment and select them in different categories so that you can direct your strategies appropriately. 
  • Place: The ultimate goal of segmentation is to decide how you offer a product to each group of consumers and make it pleasant to them. 

5 steps to implement a market segmentation strategy

In order to implement a strategy, you must not only know what market segmentation is. It is very important to know how to apply this method. That is why we have for you a guide that will help you:

  • Define your market: At this point of the segmentation you should focus on discovering how big the market is, where your brand fits and if your products have the capacity to solve what it promises.
  • Segment your market: This step consists of choosing which of the types best suits your brand.
  • Understand your market: Ask your customers the right questions, depending on the type you chose. You must know your target audience in detail. You can use online surveys to get their answers.
  • Build your customer segment: After collecting responses, you need to perform data analysis to create dynamic segments unique to your brand.
  • Test your strategy: Make sure you have correctly interpreted your survey data by testing it with your target audience. This will help you to revisit your market segmentation strategies and make the necessary changes. 

Advantages of market segmentation

Knowing what market segmentation is and the benefits it has for your organization will help you implement it correctly. Here are some of its advantages:

  • Create stronger marketing messages: When you know who you are targeting, you can create strong, personalized messages that respond to the needs and wants of your target audience.
  • Find the ideal marketing strategies: You may not know which is the right strategy to attract the ideal audience. Market segmentation allows you to know the audience, create a plan that will work successfully and determine better solutions and methods to reach them.
  • Design targeted advertising: Market segmentation allows you to target your advertising to the audience in a successful and effective way, knowing their age, location, buying habits, interests, etc.
  • Attract potential customers: By sending direct and clear marketing messages, you attract the right audience and are more likely to convert them into buyers.
  • Differentiate your brand from the competition: By creating messages specific to your value proposition, you can stand out from the competition. Segmentation allows you to differentiate your brand by focusing on specific customer needs and characteristics.
  • Identify your niche market: Market segmentation helps you discover your niche market. Identify the niche with the broadest audience and whether it has needs that your brand can effectively address.
  • Focus your efforts: Allows you to identify new marketing opportunities and avoid distractions that take you away from your target market.
  • Create a customer connection: When you know what your customers want and need, you can create effective strategies. This allows you to create strong bonds between your brand and the customer to create brand loyalty and customer satisfaction. 


Market segmentation is a highly effective strategy for organizations because it allows them to know which customers care about them and understand their needs enough to send a message that ensures brand success.  

Now that you know what market segmentation is, start your research today! Gather the information you need to learn more about your target audience using online surveys. 

Contact us and we will help you collect the data you need.

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