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4 Main Types of Market Segmentation & Their Benefits

What is Hurree? Hurree makes market segmentation better with one platform. Discover what Hurree can do for you with this short explainer video:    • What is Hurree? | Omnichannel Marketi...   ------ Market segmentation is the process of dividing and grouping your users based on commonalities and shared characteristics, like interests, needs, wants and motivations. The aim of market segmentation is to enable brands to better target their products, services or content, making sure they reach the right users, in the right place and at the right time. The 4 main types of market segmentation are as follows #1 Demographic segmentation. Arguably the most basic of the segmentation types, demographic segmentation divides users based on variables like age, gender, income, occupation, education level, marital status, religion or nationality. And it’s usually where brands begin in the segmentation process. This is because the info is easy to collect, simple to measure and analyze, and it’s cost-effective. Although, it has been criticised for being vague and not taking into account the needs and wants of individual consumers. #2 Geographic Segmentation Geographic segmentation basically groups users based on their geographic details. The 5 key areas that marketers take into account when segmenting geographically are: Location, Urbanicity, Climate, Culture and Language. #3 Behavioral segmentation. Behavioral segmentation groups users based on their actions. This could be in a store, on a website or in an app. Behavioral data tends to be gathered and analyzed through algorithms or tools like Google Analytics. Behavioral data collects and tracks things like a user’s ‘dwell time’ on a website, a website’s bounce rate, online or in-store actions, communications with the brand and whether they are new or returning users. #4 Psychographic segmentation. Arguably one of the most subjective and difficult to quantify, but also the most valuable. Psychographic segmentation focuses on a user’s psychological attributes, such as personality, values, attitudes, opinions, interests and lifestyles. Psychographics offer such a personal look into what consumers like, dislike, need, want and love. That being said, psychographic information is definitely the most difficult to collect and analyze. Marketers must also make sure that information is interpreted properly, and for the right reasons. Now these aren’t mutually exclusive, multiple segmentation types can be used together and can really complement each other, drawing actionable insights for more accurate segmentation and analysis. Overall, segmentation helps to focus marketing efforts, making sure products, services and campaigns are streamlined and delivered to the most appropriate audience for that brand. Each segmentation type will have its benefits and its drawbacks. So it’s important to always remember to respect the privacy of your users, and make sure you’re transparent in your endeavors. To find out more about market segmentation, subscribe to our YouTube channel. And for even more info on optimizing your marketing strategy, head to Hurree.co and check out our resources page, it’s all free! Finally, we’d like to hear from you. Are you going to start using segmentation in your marketing strategy? Or maybe you’d like to share some of your own info that we might have missed. Let us know by leaving a comment below. -------------------------------------------------------------------------------------------- Hurree Website: https://www.hurree.co/ Hurree Blog: https://blog.hurree.co/blog Hurree Resources: https://www.hurree.co/resources -------------------------------------------------------------------------------------------- #marketsegmentation #marketingstrategy #digitalmarketing #psychographicsegmentation