A Guide To Market Segmentation: Types And Examples

The key to a great brand is finding out what resonates most with customers. There’s no tactic to achieve this insight greater than market segmentation. 

Market segmentation allows each unique niche of your audience to get a personalized and targeted experience based on their needs and wants. 

While it might sound time-consuming to create separate marketing campaigns for each segment of your audience, it’s worth every minute and Best marketing companies recommend taking the time to do so. It’s that effective.

So, how do you approach market segmentation? Let’s start with a brief overview of what it is and why it’s so effective.

What is Market Segmentation?

Market segmentation is the practice of sectioning your audience into specific groups based on their activity and interests. PPC campaigns are likely the most common instance in which businesses first encounter market segmentation. Simply put, you’re able to segment your audiences into sub-groups that share similar outlooks on why your business interests them.

Why is this method so effective? It’s a more personalized approach to connecting with your audience. Think of it as looking at your audience not as one whole group who wants to know what you’re about but as little pockets of reasons why your business rocks. By addressing their interests head-on and getting more specific with marketing efforts, you’re more likely to seal the deal and turn the interested viewers into satisfied customers.

Types of Market Segmentation (With Examples!)

There are different ways to approach market segmentation. The most common practices include a variety of strategies to splitting your audience in a proactive matter:


  • Behavioral Segmentation
  • Engagement Segmentation
  • Location Segmentation


Let’s dive into the best strategies for these approaches and why they work.

Behavioral Segmentation

You can learn a lot about your audience by seeing how they interact with your business. From website analytics to app activity reports, you have insights into who is viewing your business in the virtual world and what they’re up to. By segmenting your audience into groups based on their behaviors, you’re able to meet them where they are and address their interests directly.

You can monitor behavior on your website, purchases, when they’re spending time on your app, and even what they’re searching for when they explore your brand online. 

Engagement Segmentation

Closely related to behavioral segmentation, engagement segmentation is the process of grouping your audience based on how they engage with your business. If they’re active on Facebook for example and come across your website, you can target those users with Facebook Ads that lead to your website. 

If you’re finding that some users have your app but only seem to want to view products in-app, you can order targeted ads that guide them back to the app and invite them to shop around more. How your audience engages with your business will vary, but segmentation at least allows you to invite users to the place they feel most comfortable exploring your business.

Location Segmentation

Lastly, one of the most proven ways to segment an audience is by their location. This is especially helpful if you intend on having an audience outside of your home city or state (which you should!) 

Even moving beyond the United States, your audience’s location is going to dictate other things about their interests and lifestyle. Knowing this information and using it to target your audience more effectively pays off time and time again.

Reimagining The Way You Reach Your Audiences

When you imagine your brand in five years, a dedicated, passionate audience is likely part of the picture. One of the most effective ways to get that dream to become a reality is to start practicing strategic market segmentation. Make the most of what you know about your audience, whether that’s with the help of a paid search agency or by yourself, and turn it into a big boost for your business!





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