Market segmentation is one of the most proficient strategies to reach the same group or audience correctly. This strategy facilitates personalizing campaigns, focusing on what is necessary and grouping consumers with similar interests to target them profitably.

What is Market Segmentation?

Market segmentation divides the target market into smaller groups with similar characteristics, such as age, income, personality traits, behavior, interests, needs, or location.

These segments can optimize products, marketing efforts, advertising, and sales.

Market segmentation allows brands to create strategies for different consumers, depending on how they perceive the total value of certain products and services. This way, they can bring in a more personalized message that they will successfully receive.

Why is Market Segmentation Important?

Market segmentation determines how the company’s target groups divide according to their characteristics such as age, income, personality, and behaviors.

This process is super important because it allows you to optimize the products better and target them to the audiences that need them. In this way, the investment in advertising to attract this segment can also optimize.

It is also essential to carry out market segmentation to guarantee that the product or service satisfies 100% of the target group’s needs. If prior research and market segmentation carry out before launching a service on the market, then it is very likely that the service may fail since it will not have a specific audience to target.

The more detail includes the segmentation that we carry out to reach a target audience, the better the reception that the product, exemplary, or service will have when launched on the market.

Types of Market Segmentation

However, said segmentation strategy presents different segmentation types that, as we will see now, present differences. Therefore, among the types of segmentation that are within the market segmentation strategy,

Product Segmentation

Product segmentation takes into account product specifications. Depending on how specific your segmentation is, you are trying to reach the target customer through said segmentation.

Industry Segmentation

Depending on the industry we focus on, the competition will be greater or less. For this, it is essential to know what our competition is and what products are—in this way, knowing which products penetrate better and which penetrate worse. This type of segmentation helps us better understand the sector.

Geographical Segmentation

Geographic segmentation is an essential type of segmentation. The geographical location in which the target profile locate and the physical space in which there lives live take into account.

Demographic Segmentation

This type of segmentation is one of the most important for focusing our product. During this segmentation phase, variables such as age, marital status, profession, gender, and the potential client’s educational level of analyzing. All these variables have a fundamental value for successfully carrying out the strategy and focusing on our product or service.

Behavioral Segmentation

Behavioral segmentation is the process of analyzing variables that have to do with user behavior. Therefore, we refer to variables that, such as consumption patterns or the sensitivity of a given audience to price levels, are of great value to the company seeking to introduce its product in a given market.

Psychographic Segmentation

Psychographic segmentation considers psychological characteristics that could be key when segmenting users or buyers for our service or product. In this way, the analyzed variables include personality, values, interests, preferences, or lifestyle.

These variables allow us to adapt our service or product to certain client expectations.

Socioeconomic Segmentation

Socioeconomic segmentation considers variables such as disposable income, purchasing power, the standard of living, salaries, and another series of variables that allow us to know how high the purchasing power of our clients is.

This segmentation is beneficial for the company since it allows knowing to what level the company can increase prices so that the target customers bear the final fee.


Market segmentation divides potential consumers into subgroups based on different variables such as age, gender, religion, consumption patterns, purchasing power, among others.

A good division of the possible customers allows companies to direct their efforts more effectively, better manage resources, and more successfully adapt products or services to the market that corresponds to them.

Several types of segmentation can apply in parallel depending on the company’s needs and potential consumers; demographic, geographic, psychographic, and behavioral segmentation.

At IAB, we firmly believe that by strategically directing a company’s efforts, better results can obtain in the market.