In today's competitive marketplace, many companies and marketers use different types of market segmentation to gather the information they need to provide efficient products or services that will exceed the expectations of their customers.
Due to this, we will examine four types of market segmentation that will be appropriate for our advertising or marketing campaigns.
Without further ado, let's begin
1. Demographic segmentation
While creating your Facebook or LinkedIn advertising campaign, you may have encountered something like "select your target audience demographic" or "select the demographic of your ad."
Whenever you come across something like that while creating your Facebook ads, it's a practical example of how to decide what demographic segmentation you want.
In any case, demographic segmentation is the process by which marketers or organizations separate their target customers based on their demographic characteristics.
The demographic elements include gender, age, income, occupation, marriage status, education, etc.
A major reason why organizations and marketers use demographic segmentation is so they can easily identify and measure their customers' needs.
We will briefly describe some of the elements of demographic segmentation.
- age
- gender
- Income
Age segementation
As one grows older, one's needs also change.
Age segmentation is the process whereby marketers divide their target audiences based on their age difference.
As a result, consumer consumption and buying patterns are influenced by their age.
A male between the ages of 14 and 30 may prioritize buying a Playstation console over saving money for the future.
In contrast, a married male gender of about 45 to 60 may see buying a Playstation console as unimportant, but see saving the money for future needs as crucial.
As a result, marketers or organizations must take consumers' age into account when segmenting their demographics.
Gender Segmentation
The process of segmenting a market based on gender (men vs. women) is called gender segmentation.
The reason is, men and women have distinctive ideas, beliefs or attitudes towards goods or services.
A typical gender segmentation in goods or services can be seen in clothing, shoes, magazines, cosmetics, hair styling etc.
Income
Marketers segment their customers according to their income level by using income segmentation.
As an example, most organizations cater their products or services specifically to high-income earners. Such products can be found in travel, automobiles, perfumes, housing, etc.
Meanwhile, organizations can also target low-income earners in order to increase sales of their goods and services, create awareness, and gain a competitive advantage.
2. Geographic segmentation
Geographic segmentation is one method of segmenting a market based on its location or geographical areas.
There are many different types of geographical areas, such as countries, states, regions, cities, etc.
With geographical segmentation, organizations or marketers can reach out to one or more geographical areas.
For instance, an organization may want to do business in a particular country like the United States but may decide to target only two states out of all the states in the United States.
The advantage of geographical segmentation is that it enables companies to tailor their products, services, or marketing efforts to meet the specific needs and wants of customers based on their geographical elements.
Depending on certain factors such as population, immigration, death rate, birth rate, it may be necessary for an organization to take note that information or data gathered from geographical segmentation may vary.
3. Psychological Segmentation
Psychological segmentation is the process by which marketers or organizations segment their customers based on their psychological elements.
The psychological elements include (but are not limited to) personality, perception, learning, attitude, and self-concept.
Organizations and marketers can utilize psychological segmentation to uncover hidden desires of their customers in order to fulfill their essential needs through better understanding their behavior and mental processes.
Many organizations conduct market research through survey methods, questionnaires, or interviews. The purpose of the study is to collect data that will aid in psychological segmentation.
4. Behavioral Segmentation
Psychologists use the word behavior to refer to anything that a person does.
Marketers or organizations segment their target audience based on their behaviors or responses to their products and services.
The behavioral elements of segmentation include (but are not limited to) benefits, usage rate, usage situation, purchase situation, and loyalty.
We will briefly discuss two of the elements of behavioral segmentation.
- Usage Rate
- Benefit Rate
Usage Rate
In usage rate, organizations or marketers segment their target audience based on their level of consumption of products or services.
The segmented usage groups are divided into non-users, quiet users, intermediate users, heavy users of products or services.
Benefits Segmentation
In benefit segmentation, marketers or organizations segment their customers into different groups based on the benefit they search for from products or services.
Conclusion
You now understand the fundamental types of market segmentation that you need before conducting an advertising campaign based on what we discussed.
Listed below are the four market segmentations we discussed
Demographic
Geographic
Psychogy
Behavioral
This detailed guide is intended to be of assistance to you, so I hope you find it useful?
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