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Market Segmentation Strategy Solutions

A marketing segmentation strategy further divides your target market into subgroups that are easier to manage.
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Knowing your target market is the first step in selling your products and services. A marketing segmentation strategy further divides your target market into subgroups that are easier to manage.

Customized customer experiences lead to higher customer loyalty and better-focused marketing campaigns. A market segmentation strategy organizes your customer or business base along demographic, geographic, behavioral, or psychographic lines—or a combination of them.

Market segmentation is an organizational strategy used to break down a target market audience into smaller, more manageable groups. A customized customer experience leads to loyalty, better brand recognition, and ultimately higher profits for a product or service.

Determining the right marketing segmentation strategy for your business means using or combining demographic, geographic, behavioral, and psychographic segments to reach a more targeted consumer or business base.

Marketing segmentation strategies help your business predict where your products and services are most wanted, allowing for better customer experiences, loyalty, and niche marketing. Market segmentation is typically divided into four groups: demographic, geographic, behavioral, and psychographic. Each segmentation strategy offers different marketing solutions, especially when segments are combined.

Create Your Marketing Segmentation Strategy

Identifying your marketing segmentation strategies ultimately involves answering these five important questions:

  1. Who is your consumer or business market?
  2. Where is your consumer or business market located?
  3. What is your consumer or business market interested in?
  4. How can you market your products and services to this market?
  5. Why are certain segments interested or not interested in your products or services?

Each of these strategies can be used to target a different customer base.


Demographics are the most common form of segmentation. They divide customers by the structure of certain population traits:

  • Age
  • Gender
  • Income
  • Occupation
  • Marital Status
  • Social Class
  • Religion
  • Education

An example of marketing segmentation using demographics is to combine age and income information to target older, wealthy retirees looking to relocate to Florida to sell beachfront property.

Another demographic strategy would be marketing fantasy or war-based video games primarily to younger individuals ages 18-30.


Regional demographics can help you sell products and services, depending on where your customers live.

  • State
  • County
  • Country
  • College
  • Community
  • International Marketing

Colleges looking to sell sports merchandise will sell items well within the state, but not so well outside home territory. Larger, non-collegiate conglomerates such as the NFL can expect a wider customer base in North America, but don’t need to bother merchandising as much overseas.


Psychographic or lifestyle segmentation targets customer hobbies and interests. This segmentation strategy caters to the most niche markets, where attractiveness, quality, and brand recognition are more important than price.

  • Interests
  • Social Status
  • Personality Type
  • Attitudes
  • Opinions
  • Values

One example of a psychographic segmentation strategy would be to target high-end musical equipment to music enthusiasts that want to collect the best gear or equipment as a status symbol for showcase collections.


Behavioral segmentation is relatively new in the digital age and takes into consideration information a company has collected through customer data reports, surveys, or marketing trends.

  • Patterns of Use
  • Price Sensitivity
  • Brand Loyalty
  • Benefits Sought

Consumers want the best brands at the best prices, and their buying patterns predict items and services they are more likely to buy. algorithms track your purchases and know that if you buy a book on grilling, you may also like to buy seasoning or barbecue tongs.

Restaurant menus are also broken up into price levels based on behavior, featuring specials, and seasonal items.

Combination Strategy

Selling snow gear to snowboarding hobbyists in Park City, Utah, combines geographic, psychographic, and demographic marketing segments. High-quality craftsmanship is expected, and customers will pay more for quality, innovative snowboards.

Since 1998, CMG has been leading strategic marketing consultants for some of the largest media and communications brands worldwide. Let’s talk and define your marketing segmentation strategy today. Think. Do. Move.