Market Segmentation

Market segmentation is a process that divides the target market into smaller segments; These small segments have common characteristics such as age, income, personality traits, interests, and location. This segmentation can be used to optimize products (or services), marketing, and advertising. Also, market segmentation gives brands the opportunity to develop strategies for different groups of consumers, depending on how they perceive the value of certain products and services. Because of this, brands can deliver more personalized messages, ensuring that they are received by the target audience.

Types of market segmentation:

In general, there are 4 types of market segmentation:

-Geographic segmentation: It includes creating different groups of customers based on geographical boundaries. The needs and interests of customers are different based on their geographic location and climate. Understanding these differences will help brands determine where to sell, where to promote the brand, and where to expand their business.

-Demographic segmentation: This segmentation is based on variables such as age, gender, nationality, education level, etc. This is one of the most widely used forms of market segmentation; Because it pays attention to how the product is used by customers and their willingness to pay.

-Psychological segmentation: interests, lifestyle, and consumer attitudes are other criteria for market segmentation. In order to understand the target audience, Market research methods such as focus groups, interviews, and surveys are used to do this type of segmentation and understand the target audience.

-Behavioral segmentation: focuses on specific reactions (i.e., consumer behaviors, patterns, and methods that influence customers’ decision-making and purchasing process). Therefore, segmentation based on the audience’s attitude and awareness of a brand and how they use products is behavioral segmentation.


-Creating strong marketing messages: Personalized messages tailored to the target audience segment help to respond to the real needs and desires of the target audience.

-Finding the ideal strategy: Knowing the target segment helps in choosing the right strategy to attract the target audience.

-Targeted advertising: Targeted advertising: market segmentation gives brands the opportunity to expose their advertising to customers; By knowing the age, place of residence, buying habits of customers, etc.

-Attracting potential customers: By creating appropriate marketing messages, it will be more possible to attract potential customers and convert them into actual customers.

-Differentiating the brand: market segmentation gives brands the opportunity to differentiate themselves from other brands by recognizing the specific needs and characteristics of customers.

-Identifying the specialized market: Identifying the positions that have the most target audience is one of the other advantages of market segmentation.

-Brand Focus: Allows the brand to identify new marketing opportunities tailored to its target market.

-Communication with the customer: Knowing the needs, interests, and characteristics of customers helps to create effective strategies. And finally, it leads to creating a deep bond between the brand and the customer and creating customer loyalty.