Market Segmentation and Why It Matters

General Marketing

Market segmentation refers to dividing your prospective customers into groups based on their shared characteristics. Segmenting allows you to target different buyers with custom messages. And campaigns that begin with segmenting are often more effective since the messaging and marketing channels you use are more likely to resonate with the people in each target audience. They may even help you build a base of brand advocates.

Market segmentation also helps you make more informed decisions on pricing, distribution, product development and new audiences to target.

How to Segment Your Market

There are many ways to subdivide your audience, but these four are the most common.

1. By Demographics

You can group your customers by age, gender, family size, level of education, occupation, income, race, religion or other criteria.

2. By Behavior

Your customers’ interactions with your products, services or brand can provide behavioral data.

Some behaviors to analyze include:

Online shopping habits
How frequently customers use your products or services
Brand loyalty
The needs consumers are trying to fulfill with your products or services

3. By Geography

Grouping market segments geographically refers to more than just physical location. You can also analyze climate, language, common interests, social norms and whether the area is rural, urban or a suburban neighborhood.

4. By Psychographics

You can group your customers based on their emotional and mental characteristics, including their interests, beliefs, values, personality traits, attitudes and lifestyles.

That information can give you insight into why consumers interact with or avoid your brand, whether it’s a product they bought or didn’t buy or an ad they reacted to or ignored.

Collecting Consumer Data

There are many ways you can gather information about your customers:

Question them directly
Track purchase data
Use online tools, such as web cookies or Google Analytics
Work with third-party providers

Need help defining your market segments or designing a marketing message that appeals to your target audience? Let’s talk about it.

RELATED BLOG POSTS:

Market Research: Standard Methods and Topics

Refining Your Marketing Message for Your Target Audience

Finding Actionable Data: Looking Beyond Vanity Metrics

"We have been working with April for about 4 months, since taking over following a client management transition. Whenever a change occurs when working closely with a company like MadAve, there is always uncertainty around how smoothly things will go. April quickly stepped into the role and handled our account like she had been working with us for months. She has great attention to detail and — most importantly — a unique ability to hold us accountable to providing the MadAve team what they need, when they need it. April has proven herself to be extremely organized and phenomenal when it comes to follow up. She is a tremendous asset for us."

- Ben Tassin, Partner Ambassador, DWM Holdings

"April has become an important member of our team. She brings our marketing plans to life, coordinating resources from diverse groups, both internal and external, keeping everyone organized and on-track. As the pace of our work becomes increasingly demanding, she never misses a beat - a true demonstration of her commitment to the American Frame brand."

- Laura Jajko, President, American Frame

"Over the past 9 years, MadAveGroup has actively engaged with us to understand our members, products and philosophy. Their due diligence delivers impressive digital campaign results month-over-month. Our organic search and paid search results have never been better! I am thankful for their expertise and recommendations as we work together to continue to boost our presence in the always-evolving world of search engines."

Heather Gilchrist, Marketing Director, VacationLand Federal Credit Union

"We've worked with MadAveGroup since 1996 in many different facets. In 2017, we implemented Pay-Per-Click and Search Engine Optimization programs, which have been instrumental in our ability to grow an average of 5.5 new customers per day for several years. Their client managers are friendly and bright and keep us updated with monthly reports. They are always there to help, answering phone calls and replying to emails almost instantly. I cannot say enough good things about MadAveGroup."

Sharon Tipping, Marketing Manager, Parker Steel

"I am most impressed with Brian and Jessica (and the team) for their abilities to be flexible and patient to come up with something that works best for our company and not just push us into something we would not be comfortable with just to get the money. This approach tells me they value the long-term relationship and not just the immediate win. Thank you all!"

Christine Gorey, Marketing Manager, Columbia Chemical

"Shaun always updates us on our quarterly changes and explains the process every time. This is a new program that I have taken over and he has been very patient and has done a great job explaining the process and the difference in scripts and messages and how Ziebart can utilize the program better."

Carly Jacobi, Field Marketing Specialist, Ziebart International Corporation

"Kara takes her role seriously and does her best to accommodate busy schedules. She is easy to work with and quick to respond. She helps keep them on track and lets them know when there is a problem before they discover it."

Kim Hoch, Vice President of Operations, Novus Clinic

Market Segmentation and Why It Matters

General Marketing

How to Segment Your Market

Collecting Consumer Data

The change you want. The results you need.

Connect with us

The change you want.
The results you need.