Methods to Create a Market Segmentation Technique

Methods to Create a Market Segmentation Technique
Methods to Create a Market Segmentation Technique

Market segmentation is a vital part of any profitable advertising technique. Why? Nicely, simply take into consideration your individual goal market. 

Hopefully, everybody in your goal market has an curiosity in your services or products. However are all your potential clients the identical age, intercourse, or situated in the identical area? Have they got the identical earnings and schooling ranges? Do all of them have the identical ache factors, wants, or needs?

In case your market is like most, your target market contains a big number of potential clients. Due to this, a method that doesn’t think about the range of traits throughout the goal market runs the danger of lacking the mark most of the time. 

As skilled marketer Seth Godin stated, “Your buyer isn’t ‘Everybody’.” It’s essential to get particular about who you’re speaking with in terms of your advertising. That is the place a market segmentation technique comes into play. 

What Is a Market Section?

A market phase is a bunch of people inside a bigger goal market who share a selected set of traits. Most goal markets can have various totally different market segments, or teams that share comparable traits. 

For instance, if we have been to have a look at the athletic footwear market, we’d uncover a wide range of totally different segments: 

  • One phase could be made up of true athletes who’re coaching exhausting within the health club each day
  • One other phase could also be in search of a snug pair of sneakers to put on when strolling their canine
  • Some clients could also be serious about model to impress others of their social group 
  • Others could be in search of stability to cut back ache and forestall falls 

The highschool basketball participant and retired grandmother each have an curiosity in athletic sneakers, however for very totally different causes. Every phase represents clients with totally different traits, needs, wants that can affect their expertise when purchasing for, buying, and utilizing the product. 

What Is Segmentation and Why Is It Essential in Advertising and marketing? 

Segmentation is the method of taking a broad market and breaking it into varied teams (A.Okay.A. segments) in response to particular traits, needs, or wants. 

Take a brewery for instance, their broad goal market consists of consumers who wish to drink good beer and eat pub model meals. When trying on the broad goal market, nevertheless, many segments exist within the market. 

They may establish a phase that eats vegetarian, one that wishes to drink IPAs, one that wishes to spend much less and drink extra, one which prefers intelligent names for the beers, and one which likes to deliver their complete household out for dinner. 

So, why is segmentation essential for advertising groups? Nicely, understanding segments might help in just a few methods. To summarize, we are able to say it like this: 

Segmentation helps entrepreneurs make the best gives to the best clients with the best message.

Returning to our brewery instance, let’s say the advertising crew recognized a helpful phase of their market made up of households with excessive incomes and younger youngsters. The advertising crew would possibly attempt to attract this viewers towards their enterprise by focusing their advertising efforts on this explicit phase. 

For instance, the entrepreneurs would possibly create a suggestion for a children meal or add some outside seating with a small playground set for youths. They’d place their ads in locations the place dad and mom will see them, and of their messages, they’d concentrate on the household pleasant ambiance and would possibly present photos of households consuming out. 

Frequent Forms of Market Segmentation 

There are infinite methods to phase any market. Relating to your distinctive goal market, it is best to outline the way you wish to phase based mostly in your distinctive wants and targets.

Getting artistic together with your segmentation might help you unleash new worth in your market, however in the event you’re in search of some fast standards, these kind of segmentation are certain to be helpful: 

  • Geographic segmentation: The place is your viewers situated geographically? Do they stay within the metropolis or in a rural space? What languages do they communicate? 
  • Demographic segmentation: What are the age teams, religions, sexes, earnings ranges, schooling ranges, or household sizes? 
  • Psychographic segmentation: What life, pursuits, hobbies, opinions, or influencers outline your viewers? 
  • Behavioral segmentation: The place are viewers members at of their purchaser journey, what model loyalty traits do they possess, what value sensitivity exist, what’s the buying model, and the way excessive is their utilization price based mostly on habits? 
  • Media desire segmentation: What social media platforms, tv networks, newspapers, serps, and different media shops does the viewers have interaction with? 
  • Profit segmentation: What do viewers members hope to get out of the providing? What are their needs, ache factors, and desires? 

B2B Segmentation & Firmographics 

Segmentation for B2B (Enterprise-to-business) entrepreneurs differs from the form of segmentation B2C (business-to-consumer) entrepreneurs do. Whereas B2C clients concentrate on the traits of their particular person clients, B2B entrepreneurs concentrate on firmographics and enterprise wants. 

Firmographics are traits of a enterprise group that can be utilized as standards for segmentation. As an alternative of utilizing Demographics, psychographics, or behaviors like B2C entrepreneurs, B2B entrepreneurs would possibly concentrate on different standards reminiscent of: 

  • Trade
  • Variety of workers 
  • Location 
  • Income
  • Buying energy 
  • Buyer lifetime worth
  • Buyer profitability 
  • Product utilization

So as to make efficient advertising selections, B2B entrepreneurs additionally want to know the shopping for course of and resolution making standards throughout the companies. This can make sure the advertising expertise is designed particularly for the enterprise they’re approaching. 

A 4-step Market Segmentation Technique & Market Segmentation Instance 

Relating to segmenting your viewers to arrange for a focused marketing campaign, instinct and luck will solely take you thus far. Companies which have probably the most success with buyer segmentation have a transparent technique in place. 

Earlier than we get into the palms on work of creating a method, let’s attempt to give you a definition for Market Segmentation Technique. A working definition would possibly go one thing like this: 

A market segmentation technique is the method by which you establish, set up, analysis, and goal a particular phase of a broad goal market. 

Constructed into this definition, we are able to pull out a 4 step course of for creating a segmentation technique. 

  1. Determine the key segments inside your broad buyer base—On this step, you’ll do some broad market analysis to uncover what sorts of traits, needs, and desires exist inside your goal market. 
  1. Set up the viewers into segments—Right here, you’ll outline your segments based mostly on varied options and traits inside your market. 
  1. Analysis and select a phase—Then, you’ll do some deeper analysis on every phase to determine which you’d prefer to concentrate on in your advertising marketing campaign. 
  1. Create gives, craft messaging, and select venues—Based mostly in your analysis, you’ll create gives for the phase you wish to goal, craft the messaging you’d prefer to method them with, and determine what venues will present probably the most publicity on your goal phase. 

Let’s have a look at every step and use Semrush’s One2Target instrument to uncover some market segments. For this instance, we’ll return to the athletic footwear market. 

Determine Your Market’s Main Segments 

The broadest degree of your market segmentation technique is the identification course of. Right here, you’re exploring your broad market to higher perceive what teams exist inside your goal market. There are numerous methods to do that, together with: 

  • Authorities information sources
  • Publicly obtainable information or studies from analysis companies 
  • Web site analytics 
  • Social media platforms 
  • Market analysis software program 

For this instance, we entered into Semrush’s One2Target and selected and to outline our market. 

Trying on the Demographics Report we found that the principle phase of the viewers for these domains is males aged 25 to 34. 


Leaping over to the Socioeconomics Report, we’d additionally collect some information associated to family sizes and incomes. On this report, it’s clear the most important phase of our goal market consists of households of 3-4 folks in a low earnings bracket. 


At this stage of the method, nevertheless, you wish to look past your largest phase and search to establish and fascinating traits within the information. For instance, in every of the domains, there’s a big proportion of feminine viewers members. We’d additionally notice is common amongst youthful audiences, whereas adidas is the most well-liked amongst audiences within the 65+ vary. Likewise, there’s a big phase of our goal market that stay in households of two with a center earnings vary. 

Any of those options of our chosen market may turn into a phase we wish to goal. 

Set up the market into segments 

Based mostly on the information we gathered within the final part, we are able to pull out a minimum of three segments of our market we’d goal in a future advertising marketing campaign. Listed below are three choices: 

  • Males aged 25-34 dwelling in households of 3-4 with center to low incomes 
  • Females aged 45-54 who stay in 2 individual households and earn a medium earnings 
  • Males aged 18-24 preferring Puma sneakers with medium to excessive incomes dwelling in 5-6 individual households 

We recognized these segments based mostly on traits that emerge within the information depicted on the graphs within the final part. As a more in-depth look, right here’s the place we obtained the phase of males aged 18-24 preferring Puma sneakers, have medium to excessive incomes, and stay in 5-6 individual households. 


Analysis and select a phase to focus on 

After doing a little deeper analysis in your recognized segments, you’ll wish to select the phase you wish to goal in your advertising marketing campaign. The phase you select to focus on will rely in your sources and your targets. 

When selecting a selected phase, it’s possible you’ll wish to think about: 

  • Measurement—Is it massive sufficient to help your targets? 
  • Progress potential—Is the phase going to develop sooner or later in measurement or buying energy? 
  • Buying energy—Will the phase have the sources to buy your product? 
  • Wants and desires—Is the phase’s wants and desires aligned with what you need to provide? 
  • Competitors—What’s the degree of competitors throughout the phase? Can you differentiate your product? 

The Hooley’s Section Attractiveness and Useful resource Energy Framework 

The Hooley’s Section Attractiveness and Useful resource Energy Framework is one other solution to establish which phase is your best option on your subsequent marketing campaign. The framework helps you establish probably the most enticing market segments and your potential to compete for these segments. 

The framework consists of two dimensions: phase attractiveness and useful resource energy. 

The phase attractiveness dimension evaluates the potential of a selected market phase, whereas the useful resource energy dimension evaluates an organization’s potential to compete in that phase.


Section attractiveness is evaluated based mostly on the next standards:

  1. Market measurement and progress potential
  2. Profitability and potential returns
  3. Aggressive depth and rivalry
  4. Entry obstacles and ease of entry
  5. Buyer wants and desires
  6. Compatibility with the corporate’s mission and values

Useful resource energy is evaluated based mostly on the next standards:

  1. Monetary sources
  2. Advertising and marketing capabilities
  3. Human sources and expertise
  4. Technological capabilities
  5. Distribution and provide chain capabilities
  6. Model fairness and fame

With this information, you may weigh the potential of assorted segments to determine that are the perfect, which want enchancment, that are poor prospects, and that are your worst prospects. 

Create gives, craft messaging, and select promoting venues

After making a closing resolution on which phase to focus on, you’ll must determine the right way to design your gives, the right way to talk with the viewers, and the place to share your messages in order that they attain your required viewers. 

Relating to designing your gives, take into consideration the phase’s main ache factors and their greatest needs. Are they tight on disposable earnings? Do they need one thing to do with their children? Are they in search of one thing sensible or are they searching for leisure?

These sorts of questions will assist you concentrate on what sort of provide to make to achieve their curiosity. 

When creating your messaging, use language that the phase makes use of of their each day lives. As an illustration, it’s possible you’ll wish to keep away from slang or stylish language with an older viewers. In case your promoting comprises photos or sounds, be certain that they resonate with the phase’s on a regular basis expertise. 

Lastly, select promoting venues the place your viewers phase spends their time. A method to do that is with the Additionally Visited desk in One2Target’s Viewers Overlap Report.

Let’s say we wished to run some voice adverts on music streaming web sites. We may filter the Visited Domains desk to point out solely music based mostly domains. Right here’s a have a look at’s and’s additionally visited pages within the music class. 


Discover the variations within the lists of domains provided by One2Target. For Adidas, which had an older viewers, Spotify is the highest visited area within the music class. So if we have been focusing on our phase of ladies aged 45-54, we’d place adverts right here. 


Puma, alternatively, had a youthful viewers. Their high music websites have been, and decrease down the listing,, a music streaming service extra common amongst youthful audiences. These could be our selections if we have been focusing on our youthful phase. 

Assume Lengthy Time period with Your Market Segmentation Technique 

Viewers segmentation is a strong instrument that may provide help to enhance your advertising plan and extra successfully attain your target market. By breaking your market into smaller, extra particular teams based mostly on key traits, you may create extra related and personalised advertising campaigns. 

It’s essential to recollect as you progress towards the long run that markets change and audiences evolve. Due to this fixed change, it’s essential to return to your segmentation technique frequently to be sure to’re nonetheless talking to your viewers’s wants. This can permit you to construct longer and stronger relationships together with your clients, improve engagement, and in the end drive gross sales.