April 13, 2024

Market segmentation is a vital part of any profitable advertising and marketing technique. Why? Nicely, simply take into consideration your personal goal market. 

Hopefully, everybody in your goal market has an curiosity in your services or products. However are your entire potential clients the identical age, intercourse, or situated in the identical area? Have they got the identical revenue and training ranges? Do all of them have the identical ache factors, wants, or wishes?

In case your market is like most, your target market contains a big number of potential clients. Due to this, a technique that doesn’t consider the range of traits inside the goal market runs the danger of lacking the mark most of the time. 

As skilled marketer Seth Godin stated, “Your buyer isn’t ‘Everybody’.” You should get particular about who you’re speaking with in terms of your advertising and marketing. That is the place a market segmentation technique comes into play. 

What Is a Market Section?

A market section is a gaggle of people inside a bigger goal market who share a specific set of traits. Most goal markets may have a lot of completely different market segments, or teams that share comparable traits. 

For instance, if we have been to take a look at the athletic footwear market, we’d uncover a wide range of completely different segments: 

  • One section could be made up of true athletes who’re coaching exhausting within the health club daily
  • One other section could also be in search of a snug pair of footwear to put on when strolling their canine
  • Some clients could also be fascinated by fashion to impress others of their social group 
  • Others could be in search of stability to scale back ache and forestall falls 

The highschool basketball participant and retired grandmother each have an curiosity in athletic sneakers, however for very completely different causes. Every section represents clients with completely different traits, wishes, wants that may affect their expertise when purchasing for, buying, and utilizing the product. 

What Is Segmentation and Why Is It Essential in Advertising and marketing? 

Segmentation is the method of taking a broad market and breaking it into varied teams (A.Okay.A. segments) in accordance with particular traits, wishes, or wants. 

Take a brewery for instance, their broad goal market consists of shoppers who need to drink good beer and eat pub fashion meals. When trying on the broad goal market, nonetheless, many segments exist inside the market. 

They may establish a section that eats vegetarian, one that wishes to drink IPAs, one that wishes to spend much less and drink extra, one which prefers intelligent names for the beers, and one which likes to deliver their complete household out for dinner. 

So, why is segmentation necessary for advertising and marketing groups? Nicely, understanding segments can assist in just a few methods. To summarize, we will say it like this: 

Segmentation helps entrepreneurs make the best provides to the best clients with the best message.

Returning to our brewery instance, let’s say the advertising and marketing workforce recognized a useful section of their market made up of households with excessive incomes and younger youngsters. The advertising and marketing workforce may strive to attract this viewers towards their enterprise by focusing their advertising and marketing efforts on this specific section. 

For instance, the entrepreneurs may create a proposal for a children meal or add some out of doors seating with a small playground set for teenagers. They’d place their commercials in locations the place dad and mom will see them, and of their messages, they’d concentrate on the household pleasant environment and may present photographs of households consuming out. 

Frequent Forms of Market Segmentation 

There are infinite methods to section any market. With regards to your distinctive goal market, you need to outline the way you need to section primarily based in your distinctive wants and objectives.

Getting inventive along with your segmentation can assist you unleash new worth in your market, however should you’re in search of some fast standards, a lot of these segmentation are positive to be helpful: 

  • Geographic segmentation: The place is your viewers situated geographically? Do they dwell within the metropolis or in a rural space? What languages do they converse? 
  • Demographic segmentation: What are the age teams, religions, sexes, revenue ranges, training ranges, or household sizes? 
  • Psychographic segmentation: What life, pursuits, hobbies, opinions, or influencers outline your viewers? 
  • Behavioral segmentation: The place are viewers members at of their purchaser journey, what model loyalty traits do they possess, what worth sensitivity exist, what’s the buying fashion, and the way excessive is their utilization charge primarily based on conduct? 
  • Media choice segmentation: What social media platforms, tv networks, newspapers, search engines like google and yahoo, and different media shops does the viewers interact with? 
  • Profit segmentation: What do viewers members hope to get out of the providing? What are their wishes, ache factors, and wishes? 

B2B Segmentation & Firmographics 

Segmentation for B2B (Enterprise-to-business) entrepreneurs differs from the form of segmentation B2C (business-to-consumer) entrepreneurs do. Whereas B2C clients concentrate on the traits of their particular person clients, B2B entrepreneurs concentrate on firmographics and enterprise wants. 

Firmographics are traits of a enterprise group that can be utilized as standards for segmentation. As an alternative of utilizing Demographics, psychographics, or behaviors like B2C entrepreneurs, B2B entrepreneurs may concentrate on different standards akin to: 

  • Business
  • Variety of workers 
  • Location 
  • Income
  • Buying energy 
  • Buyer lifetime worth
  • Buyer profitability 
  • Product utilization

So as to make efficient advertising and marketing choices, B2B entrepreneurs additionally want to know the shopping for course of and resolution making standards inside the companies. This can make sure the advertising and marketing expertise is designed particularly for the enterprise they’re approaching. 

A 4-step Market Segmentation Technique & Market Segmentation Instance 

With regards to segmenting your viewers to organize for a focused marketing campaign, instinct and luck will solely take you thus far. Companies which have essentially the most success with buyer segmentation have a transparent technique in place. 

Earlier than we get into the arms on work of growing a technique, let’s attempt to give you a definition for Market Segmentation Technique. A working definition may go one thing like this: 

A market segmentation technique is the method by way of which you establish, set up, analysis, and goal a particular section of a broad goal market. 

Constructed into this definition, we will pull out a 4 step course of for growing a segmentation technique. 

  1. Determine the foremost segments inside your broad buyer base—On this step, you’ll do some broad market analysis to uncover what sorts of traits, wishes, and wishes exist inside your goal market. 
  1. Manage the viewers into segments—Right here, you’ll outline your segments primarily based on varied options and traits inside your market. 
  1. Analysis and select a section—Then, you’ll do some deeper analysis on every section to determine which you’d prefer to concentrate on in your advertising and marketing marketing campaign. 
  1. Create provides, craft messaging, and select venues—Primarily based in your analysis, you’ll create provides for the section you need to goal, craft the messaging you’d prefer to method them with, and determine what venues will present essentially the most publicity in your goal section. 

Let’s have a look at every step and use Semrush’s One2Target device to uncover some market segments. For this instance, we’ll return to the athletic footwear market. 

Determine Your Market’s Main Segments 

The broadest degree of your market segmentation technique is the identification course of. Right here, you’re exploring your broad market to raised perceive what teams exist inside your goal market. There are lots of methods to do that, together with: 

  • Authorities knowledge sources
  • Publicly obtainable knowledge or studies from analysis companies 
  • Web site analytics 
  • Social media platforms 
  • Market analysis software program 

For this instance, we entered adidas.com into Semrush’s One2Target and selected nike.com and puma.com to outline our market. 

Wanting on the Demographics Report we found that the primary section of the viewers for these domains is males aged 25 to 34. 


Leaping over to the Socioeconomics Report, we would additionally collect some knowledge associated to family sizes and incomes. On this report, it’s clear the most important section of our goal market consists of households of 3-4 individuals in a low revenue bracket. 


At this stage of the method, nonetheless, you need to look past your largest section and search to establish and attention-grabbing developments within the knowledge. For instance, in every of the domains, there’s a big proportion of feminine viewers members. We would additionally notice puma.com is fashionable amongst youthful audiences, whereas adidas is the most well-liked amongst audiences within the 65+ vary. Likewise, there’s a big section of our goal market that dwell in households of two with a center revenue vary. 

Any of those options of our chosen market may change into a section we need to goal. 

Manage the market into segments 

Primarily based on the info we gathered within the final part, we will pull out at the very least three segments of our market we would goal in a future advertising and marketing marketing campaign. Listed below are three choices: 

  • Males aged 25-34 residing in households of 3-4 with center to low incomes 
  • Females aged 45-54 who dwell in 2 individual households and earn a medium revenue 
  • Males aged 18-24 preferring Puma sneakers with medium to excessive incomes residing in 5-6 individual households 

We recognized these segments primarily based on developments that emerge within the knowledge depicted on the graphs within the final part. As a more in-depth look, right here’s the place we obtained the section of males aged 18-24 preferring Puma sneakers, have medium to excessive incomes, and dwell in 5-6 individual households. 


Analysis and select a section to focus on 

After doing a little deeper analysis in your recognized segments, you’ll need to select the section you need to goal in your advertising and marketing marketing campaign. The section you select to focus on will rely in your sources and your objectives. 

When selecting a specific section, you might need to contemplate: 

  • Measurement—Is it massive sufficient to assist your objectives? 
  • Development potential—Is the section going to develop sooner or later in measurement or buying energy? 
  • Buying energy—Will the section have the sources to buy your product? 
  • Wants and desires—Is the section’s wants and desires aligned with what it’s a must to supply? 
  • Competitors—What’s the degree of competitors inside the section? Can you differentiate your product? 

The Hooley’s Section Attractiveness and Useful resource Energy Framework 

The Hooley’s Section Attractiveness and Useful resource Energy Framework is one other method to establish which section is the only option in your subsequent marketing campaign. The framework helps you establish essentially the most enticing market segments and your potential to compete for these segments. 

The framework consists of two dimensions: section attractiveness and useful resource energy. 

The section attractiveness dimension evaluates the potential of a specific market section, whereas the useful resource energy dimension evaluates an organization’s potential to compete in that section.


Section attractiveness is evaluated primarily based on the next standards:

  1. Market measurement and development potential
  2. Profitability and potential returns
  3. Aggressive depth and rivalry
  4. Entry obstacles and ease of entry
  5. Buyer wants and desires
  6. Compatibility with the corporate’s mission and values

Useful resource energy is evaluated primarily based on the next standards:

  1. Monetary sources
  2. Advertising and marketing capabilities
  3. Human sources and expertise
  4. Technological capabilities
  5. Distribution and provide chain capabilities
  6. Model fairness and status

With this knowledge, you may weigh the potential of varied segments to determine that are the perfect, which want enchancment, that are poor prospects, and that are your worst prospects. 

Create provides, craft messaging, and select promoting venues

After making a closing resolution on which section to focus on, you’ll have to resolve how you can design your provides, how you can talk with the viewers, and the place to share your messages in order that they attain your required viewers. 

With regards to designing your provides, take into consideration the section’s main ache factors and their greatest wishes. Are they tight on disposable revenue? Do they need one thing to do with their children? Are they in search of one thing sensible or are they searching for leisure?

These sorts of questions will assist you consider what sort of supply to make to achieve their curiosity. 

When growing your messaging, use language that the section makes use of of their day by day lives. For example, you might need to keep away from slang or stylish language with an older viewers. In case your promoting accommodates photographs or sounds, make certain they resonate with the section’s on a regular basis expertise. 

Lastly, select promoting venues the place your viewers section spends their time. A technique to do that is with the Additionally Visited desk in One2Target’s Viewers Overlap Report.

Let’s say we needed to run some voice adverts on music streaming web sites. We may filter the Visited Domains desk to indicate solely music primarily based domains. Right here’s a have a look at adidas.com’s and puma.com’s additionally visited pages within the music class. 


Discover the variations within the lists of domains supplied by One2Target. For Adidas, which had an older viewers, Spotify is the highest visited area within the music class. So if we have been focusing on our section of ladies aged 45-54, we would place adverts right here. 


Puma, alternatively, had a youthful viewers. Their high music websites have been genius.com, and decrease down the checklist, tidal.com, a music streaming service extra fashionable amongst youthful audiences. These could be our selections if we have been focusing on our youthful section. 

Suppose Lengthy Time period with Your Market Segmentation Technique 

Viewers segmentation is a robust device that may allow you to enhance your advertising and marketing plan and extra successfully attain your target market. By breaking your market into smaller, extra particular teams primarily based on key traits, you may create extra related and personalised advertising and marketing campaigns. 

It’s necessary to recollect as you progress towards the long run that markets change and audiences evolve. Due to this fixed change, it’s necessary to return to your segmentation technique frequently to be sure you’re nonetheless chatting with your viewers’s wants. This can will let you construct longer and stronger relationships along with your clients, enhance engagement, and finally drive gross sales.