The 4 Aspects of Market Segmentation

Market segmentation is a process of narrowing a broad market into smaller sub-groups to make it easier for companies to cater to more specific target audiences, and can be categorised based on common defining characteristics of your choice. Market segmentation is one of the ways to differentiate your business from the lot while enabling you to appeal to either a broad audience or a niche one! There are 4 typical aspects when it comes to market segmentation – demographic, psychographic, geographical and behavioural – and it is always good to consider each aspect when deciding on how to go about marketing your products to the relevant audience.

1. Demographic segmentation

Demographic segmentation takes into account identifiable non-character traits such as age, gender, ethnicity, income, religion, etc. By understanding the demographic segmentation of your target audience, you can then decide on various aspects of your product such as pricing (based on their income) or design (based on their age), as well as how to go about reaching out to them effectively and crafting the relevant content, which can then help you make the best use of your resources instead of letting it go to waste.

2. Psychographic segmentation

Psychographic segmentation looks at the personalities and interests of your target audience, which can be categorised based on their personality traits, hobbies, values, beliefs, lifestyles, et cetera. However, since these are subjective to each individual, thorough research must be done to allow for effective marketing, so that when consumers read the content, they can better relate to it on a personal level.

3. Geographical segmentation

Geographical segmentation is a strategy that pinpoints your target audience according to the specific location they are at, for easier identification and grouping. Geographical segmentation can be defined by their country of residence, region, city and postal code. By classifying customers within a certain location, it allows companies to reach a more local and niche audience.

4. Behavioural segmentation

By having a good knowledge of your target audience’s behavioural traits, it will help you better understand their spending habits, purchasing habits, browsing habits and interactions with your brand. By collecting these data that have been derived from customers’ actions, you can then get down to customising the appropriate message and graphics.