The Four Types of Market Segmentation

We already discussed what market segmentation is and how it may help you understand your clients, pinpoint needs in your market segment, and work out how to effectively satisfy those needs with your goods or services. Now we are going to discuss the different types of market segmentation and their features.

The Four Types of Market Segmentation

The four types of market segmentation are demographic segmentation, psychographic segmentation, behavioral segmentation and geographic segmentation. Multiple sub-categories further divide audiences and clients into categories within each of these market segmentation kinds.

1. Demographic Segmentation

One of the most well-liked and frequently employed types of market segmentation is demographic segmentation. It refers to numerical information on a population.

An organization’s target market is segmented using the market segmentation technique known as demographic segmentation based on demographic factors like age, gender, education, income, etc. It aids businesses in comprehending their clientele so that their requirements can be better met.

Demographic Market Segmentation Examples

  • Age
  • Gender
  • Income
  • Location
  • Family Situation
  • Annual Income
  • Education
  • Ethnicity

Whereas the aforementioned illustrations are useful for classifying B2C audiences, a company might utilize the following to categorize a B2B audience:

  • Size of the business
  • Industry
  • Job Function

Since demographic data is statistical and real, it is typically simple to find using different websites for market research.

A vehicle manufacturer that sells a luxury car brand can serve as a straightforward illustration of B2C demographic segmentation. This business would probably aim for a more affluent market.

A company that supplies an enterprise marketing platform could serve as another B2B example. This brand is most likely aimed at marketing managers at bigger businesses (for example, those with 500+ people), who can make purchasing decisions for their teams.

2. Psychographic Segmentation

Through psychographic segmentation, audiences and clients are divided into groups based on variables related to their personalities and traits.

Psychographic segmentation is used to examine consumers and categorize them based on psychological traits such as personality, lifestyle, social status, activities, interests, opinions, and attitudes.

Psychographic Market Segmentation Examples 

  • Personality traits
  • Values
  • Attitudes
  • Interests
  • Lifestyles
  • Psychological influences
  • Subconscious and conscious beliefs
  • Motivations
  • Priorities

Due to their subjectivity, psychographic segmentation criteria are a little harder to pinpoint than demographic ones. They take the investigation to identify and comprehend because they are not data-focused.

For instance, the luxury automobile company might decide to target buyers who place a high value on status and quality. The B2B corporate marketing platform can be aimed toward marketing managers who are eager to boost output and prove their worth to their executive team.

3. Behavioral Segmentation

Behavioral segmentation focuses on a customer’s actions, as opposed to demographic and psychographic segmentation, which emphasizes a customer’s characteristics.

The technique of classifying and grouping clients according to the actions they display is known as behavioral segmentation. These behaviors include the kinds of goods and materials people consume, as well as the frequency with which they connect with a particular app, website, or company.

Behavioral Market Segmentation Examples 

  • Purchasing habits
  • Spending habits
  • User status
  • Brand interactions

You must be aware of your customers’ behaviors in order to perform behavioral segmentation. These actions could be connected to consumer brand interactions or to other actions that take place unrelated to your brand.

Choosing to target clients who have purchased a high-end automobile in the previous three years may be a B2C example in this market. The leads that have registered for one of the B2B marketing platform’s free webinars may be the main emphasis.

4. Geographic Segmentation

The most straightforward kind of market segmentation is geographic segmentation. It divides customers into groups according to locations.

A marketing tactic known as geographic segmentation targets goods and services at local residents and business owners. It operates under the premise that locals have comparable needs, desires, and cultural factors.

Geographic Market Segmentation Examples   

  • ZIP code
  • City
  • Country
  • Radius around a certain location
  • Climate
  • Urban or rural

Geographic segmentation can refer to a certain sort of territory or a clearly defined geographic border (such as a city or ZIP code) (such as the size of the city or type of climate).

A premium car manufacturer may decide to target clients who reside in warm climates where cars are not required to be outfitted for snowy weather as an example of geographic segmentation. Depending on where their target audience is most likely to work, the marketing platform may concentrate their marketing efforts in urban metropolis centers.


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