The 4 Different Types Of Market Segmentation

As a business owner or manager, you are likely on the hunt for fresh and innovative ways to increase profit. Online resources like HopsReview generate consistent reviews on the best marketing products and techniques available. One noteworthy way to enhance your business’s marketing efforts is through the process of market segmentation.

Simply defined, market segmentation is the aggregation of potential customers into diverse groups. These distinctive groups consist of individuals with similar wants and needs based on their specific circumstances.

Marketing team planning session

Today, we will explore the 4 different types of market segmentation that are commonly used in the marketing world and how they can be used to more effectively distribute your business’s product or service.

1. Demographic Segmentation

This type of segmentation is arguably the most prevalent type in the marketing industry. In most cases, it usually plays an important role in a marketing strategy. A few of the most common demographic categories utilized in this type of segmentation are:

  • Age
  • Race
  • Gender
  • Number of children(if any)
  • Marital status
  • Income
  • Living situation (renter or homeowner)
  • Level of education achieved
  • Occupation

Considering these factors that make up an individual’s everyday lives will help you reach the most optimal audiences. For example, school supplies and textbooks are marketed to younger people, while canes and walkers are targeted to the elderly population.

2. Geographic Segmentation

Companies utilize this type of marketing segmentation by focusing their marketing efforts on a specific geographic area. This strategy can take a variety of molds. A company could choose to advertise in specific countries and avoid others or focus on select regions within one country.

Geographic segmentation is effective because it capitalizes on an area’s physical characteristics, such as landscape, climate, proximity to bodies of water, and even altitude. A company that produces ski gear may wisely choose to target the northwestern United States and forgo any marketing efforts in states like Georgia and Florida. It also takes consumer preferences varying by region into consideration. A sweet tea company may have better success targeting the southeast United States, while it may not experience success in more northern states.

Man spinning small globe

3. Media Segmentation

Media segmentation is a newer concept that isn’t discussed as frequently, but it has the potential to play an important role in improving a company’s marketing efforts. Media segmentation is when a company uses a specific medium, whether it be TV commercials, social media posts, radio advertisements, or magazine features, to reach a specific audience.

When using media segmentation, companies recognize that different media will reach different audiences. If a company pools all of their advertising resources into one medium, they are more likely to dominate a portion of the market that consumes that medium.

4. Psychographic Segmentation

Psychographic segmentation, also commonly known as lifestyle segmentation, is centered on determining consumers’:

  • Beliefs
  • Attitudes
  • Values
  • Behaviors
  • Interests
  • Emotions

It is in this type of market segmentation that qualitative studies, like personal interviews and focus groups, are often conducted. For example, a company may find that a city has a large number of people who adhere to Jewish dietary laws. Consequently, the company would choose to heavily advertise its line of kosher food products in this city.

Stop wasting resources trying to convince everyone in the world that they could benefit from interacting with your business. Accepting that not everyone will need your product or service is an important step in developing your marketing process.


Give your marketing strategy a more individualized approach by implementing market segmentation. It is important to note that the varying types of market segmentation are often used alongside each other and have room for overlap with other types.

Consider your business’s products, services, and goals, and determine the best way to reach an audience that will benefit most from what your business has to offer.