Market Segmentation: Key Criteria

Market Segmentation Technique: What Is It and Why Is It Vital?

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Whenever you begin creating a advertising and marketing technique, the textbooks inform us that the client persona is among the first issues to outline. Nonetheless, with time, the idea of a audience will get too broad and generic to attain essentially the most spectacular outcomes. 

That is the place market segmentation is available in. This advertising and marketing methodology creates focused methods which can be important to attract the eye of people who find themselves already . In different phrases, as a substitute of attempting to persuade an viewers that the product you are attempting to promote is worth it, you can place it in entrance of people who find themselves already wanting.  

What is Market Segmentation? 

The fundamental definition of market segmentation is when your audience is split into smaller classes that share related traits. 

Listed below are a couple of the reason why this may profit your model:

  • Creating hyper-targeted advertisements;
  • Constructing stronger relationships with prospects;
  • Differentiating your model from rivals;
  • Figuring out advertising and marketing techniques which have extra influence.

With market segmentation, you’ll doubtless discover that sure sections of your viewers are extra motivated to buy throughout sure seasons. Maybe folks residing in particular native areas are extra all for a subsection of your merchandise, and so on. 

Market Segmentation: Key Standards

You’ll be able to and ought to outline your personal buyer segmentation, however the important thing textbook examples are: 

  • Geographic: nation/metropolis, city/rural and many others.
  • Demographic: age, faith, gender, earnings, socio-economic sort, training, household dimension/standing
  • Psychographic: way of life, pursuits, hobbies, opinions, influencers
  • Behavioral: purchaser journey stage, model loyalty traits, value sensitivity, buying model, utilization fee
  • Media: social media/TV/newspapers/search engine preferences
  • Profit: customer support, high quality, and different particular expectations.
Market Segmentation: Key Criteria

Geographic Segmentation

This is among the easiest goal market segmentation strategies. You may divide your prospects based mostly on their geographic borders. You’ll be able to section them based on: 

  • Metropolis / State / Nation / Zipcode
  • Radius round a location
  • Local weather
  • Rural or city

In relation to geographic market segmentation examples, think about a model that sells a wide range of clothes types. They will wish to section their viewers based on the local weather with a purpose to goal people who find themselves in want of hotter clothes versus cooler clothes based on the season of their space.

Manufacturers which have a brick-and-mortar retailer but in addition promote their items on-line may additionally wish to present particular incentives for patrons who stay close to their bodily location. 

Demographic Segmentation

Goal market segmentation based mostly on demographics might be some of the efficient methods to focus on particular prospects. The explanation for it’s because you possibly can uncover the demographics of your viewers simply. 

It’s also possible to uncover demographic data through the use of Fb Viewers Perception, Instagram Viewers Perception, and Google Analytics. These easy-to-use instruments gives you data on the next: 

  • Age / Intercourse;
  • Location;
  • Ethnicity;
  • Earnings / Employment standing;
  • Occasions they’re most frequently on-line;
  • Family, and so on.

Segmenting a audience based mostly on demographics can open up new potentialities on your advertising and marketing methods. For example, new merchandise which can be coming to market which can be solely related to ladies will save advertising and marketing {dollars} over time. Manufacturers which can be additionally promoting luxurious items will discover extra success by advertising and marketing to individuals who have larger incomes.

Your viewers could also be primarily youngsters or younger adults, however you may additionally wish to remember that their mother and father could also be all for merchandise in terms of buying items for them. Advertising in the direction of their mother and father may also help you fill within the gaps in terms of dryer seasons. 

Psychographic Segmentation

Psychographic segmentation is all concerning the audience’s minds. By understanding what they care about on a day-to-day foundation, you can create content material that they interact with constantly and share with household and mates. This contains studying their:

  • Personalities;
  • Hobbies / Pursuits;
  • Values / Targets / Beliefs;
  • Life. 

These might be a lot tougher to establish in comparison with demographics and location. Nonetheless, after you have grasp of your viewers’s psychographics, you can tailor your advertising and marketing methods in a extra personally approach. 

Past promoting a services or products, utilizing psychographic data in your advertising and marketing may also help construct relationships and rapport with prospects. You’ll construct a robust following of people that belief the model!

If you do not know the place to begin on uncovering this information, attempt together with extra questions in your emails, social media content material, and extra. Individuals are comfortable to reply fast questions on themselves in terms of their aspirations and goals. It’s also possible to ask them about their opinions of present occasions or “this vs that” questions. 

B2B Segmentation

B2B firms want to make use of completely different techniques and methods in terms of segmenting audiences. Though it could appear harder in comparison with B2C, you can differentiate firms simply as successfully with the next techniques. 


You’ll be able to consider firmographics as demographics for B2C market segmentation. You may keep in mind the scale of the corporate, the tradition, business, location, and extra. This is among the hottest methods to section firms, as a result of it is pretty simple to accumulate this data.

It’s additionally easy to explain completely different firm segments to completely different departments. For example, the gross sales division will simply perceive the prioritization of firms with 200 workers or extra.


Buyer tiering relies on how effectively you assume an organization can match your online business objectives. For example, firms that can have the ability to match your gross sales objectives every month could also be on the high of your tier. By segmenting prospects based mostly on their buyer lifetime worth, you can use your advertising and marketing {dollars} in a more practical approach. 

This doesn’t suggest that you’re going to ignore firms which have a decrease buyer lifetime worth. As an alternative, you possibly can concentrate on merchandise and companies they want quite than attempting to attract them in with gives that they traditionally do not worth. 


This is among the most easy methods to section B2B prospects. For example, when you’re an organization that provides distant HR options, you can section your prospects based mostly on how usually they want your companies. This additionally ties into firm firmographics, as the scale of an organization, in addition to their funds, may also help decide the options they’re in search of. 

You’ll have older firms that also choose inserting orders over the telephone. Conversely, some firms want to have the ability to simply order on-line at any time. 

The primary draw back of this sort of segmentation is that it is tougher to speak to different departments. This may be tackled with complete documentation for every firm based mostly on their historical past together with your firm. 


Final however not least, segmenting prospects based mostly on habits is a pleasant complement to needs-based buyer segmentation. The explanation for it’s because you may be listening to how they work together and interact with the merchandise and companies. 

Maybe an organization appears to be scuffling with implementing your SaaS platform and regularly calls the customer support line for assist. If that is so, there could also be easier options out there that you could advocate that can make it simpler for them sooner or later. You may be looking at every buyer and contemplating whether or not there’s any upsell potential, or whether or not you are vulnerable to dropping them. 

The best way to Collect Intel for Market Segmentation

Whereas numerous the details about your buyer base ought to come from interviews and qualitative evaluation, you can too discover numerous helpful information throughout numerous instruments:

  • For exterior evaluation, you should utilize Semrush’s Market Explorer device to get preliminary intel concerning the in-market viewers: from demographics and most viewers potential to media preferences and social media habits.
Market Explorer tool: in-market audience
  • For inner stats, be sure that to make use of your CRM system’s information and Google Analytics. The latter reveals some primary data about your viewers demographics and person habits. You should utilize it to find out about every buyer section’s response to numerous techniques and, thus, discover out who can have the best influence. 

Placing Market Segmentation into Motion: Efficient Advertising That Works 

When you’ve recognized your main market segments, you possibly can apply Hooley’s Phase Attractiveness and Useful resource Energy framework to evaluate every class’s attraction based mostly in your inner sources:

Hooley’s Segment Attractiveness and Resource Strength framework

The important thing level of market segmentation, nonetheless, is to additional use it to develop your concentrating on and positioning. These are the foundations of the STP (Segmentation, Concentrating on, Positioning) Mannequin:

  • Concentrating on: based mostly on numerous buyer segments, you possibly can assess which one can doubtlessly reply higher to your providing, thereby bringing extra revenue and/or staying longer together with your model.
  • Positioning: by contemplating your chosen main market segments, you possibly can outline methods to go about inserting your product in entrance of every section and will have the ability to slender down your key worth proposition.

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