Why is it important to segment the market? Types of segmentation

Our products or services will not always be able to cover the whole market.

For this reason, market segmentation is of utmost importance in order to optimise customer acquisition as well as our sales. 

As we have already mentioned in previous blogsmarket segmentation is, in addition, a fundamental step to focus our marketing and advertising strategies, allowing us to personalise campaigns and adapt them to the audience.


Some of the most notable advantages are: 

  • Increased profitsAs mentioned above, segmenting the market helps to understand the exact needs of that customer group and therefore allows our business to tailor its products or services to those needs, increasing business sales. 
  • Effectiveness of marketing and advertising campaignssegmentation: this segmentation also allows us to personalise and adapt campaigns to the different groups of customers that our business may have, making these campaigns more effective because they are more attractive to these customers. 
  • Customer loyaltyA final benefit, which may go unnoticed, is customer loyalty. By personalising campaigns and trying to adjust our products and services to the customer's needs, we increase the chances of customer loyalty. In this sense, it is not the same for a customer to ask about a specific product or service as it is for us to suggest the most suitable product or service for what they need. 

Having seen the most important advantages of market segmentation, how can we segment the market? 


There are many different types of segmentation. Here are some ways of doing this: 


This type of segmentation is mainly focused on the lifestyle of customers. That is to say, their hobbies, interests, desires and even feelings and motivations

This type of segmentation has the great advantage of allowing us to get to know our customers, as it involves a prior analysis of their habits and lifestyles in order to, later on, get to know them better, customising our campaigns and highlighting the features of our products or services that are most relevant and adapted to these lifestyles

A clear example would be a luxury car brand. As this type of car is concerned, it is obvious that their campaigns cannot target an entire market, but must be segmented and seek out those with a higher purchasing power.

In this first case, segmentation would be done on the basis of customers' lifestyles

A second example is the Nespresso, which advocates feelings of elegance, power and sobriety.The choice of actors, costumes, etc., in their campaigns is very careful. 

In this respect, Nespresso is looking to capture those customers who have a special interest in coffee types, as well as the idea of having a more refined taste.It is therefore based on interests and feelings..


As the name suggests, it is about focus on customer behaviourespecially with regard to the use, attitude and knowledge regarding a product or service. 

Thus, within this type, various groups can be organised. By way of example, we can mention the following: 

  • According to the frequency of use of certain products or services: For example, a mechanic who frequently needs to buy parts to fix cars. 
  • Depending on the level of use: To return to the previous example, the mechanic who has his own small car repair shop is not the same as a company that has different shops in different locations. Consequently, the company will need a larger quantity of products. 

In this way, as with the other types of segmentation, allows customisation as well as adaptation to customer needs


It is usually the best known and most widely used type of segmentation. It focuses on very basic and general aspects, such as age, education, gender, nationality, religion, etc.

Like the previous ones, it allows for better adaptation to the needs of customers, but it can create certain problems because it is based on an assumption that is not always true: that customers in the same group have the same needs.

A clear example is in the field of mobile telephony. In an age-segmented group under 30, not everyone will have the same needs. Some will want a better camera resolution, others more powerful mobile speakers, others a larger memory capacity, etc. 

Also, We must also not forget that, due to the constant changes in the market, the needs of the groups can always change..  

For this reason, and despite being a completely valid segmentation, as well as being the most widely used, It is always advisable to be accompanied by behavioural and psychographic analyses and surveys, as these will determine tastes and behaviours.The problems mentioned above are prevented from arising. 

The most typical example is a company that manufactures toys. In their case, age segmentation will be evident, since from the age of x, children will no longer want toys, opting for other things such as, for example, consoles and other devices. 


Finally, another type of segmentation is geographic segmentation, which is one of the most widely used after demographic segmentation. 

This segmentation focuses on making groups according to the geographical location of customersboth nationally and internationally.

In this sense, the customs of one territory or another can have a significant influence on the tastes and needs of customers. As well as the area itself, where it is possible to differentiate between large cities and more rural areas, or between coastal areas and those located in mountainous terrain.

Thus, a clear example would be supermarket chains, where a totally different marketing campaign would be implemented in capital or large cities, with media promotion being the most appropriate, compared to smaller localities, where perhaps a strategy focused on promoting offers through distributed leaflets would work better. 

Having said that, there can be many more types and sub-types of targeting, the most important ones for our marketing and advertising campaigns as well as for our Google Adwords campaigns. 

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