Market Segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics.
Common Types
- Demographic: Age, gender, income.
- Psychographic: Values, interests, lifestyles.
- Behavioral: Usage, loyalty, readiness.
- Firmographic: Company size, industry, revenue.
The Purpose
Segmentation allows for Positioning and messaging that resonates more deeply. You cannot be everything to everyone.
The Value-First Approach
Move beyond static demographics to Needs-Based and Readiness-Based segmentation.
- Instead of “Males 18-35,” segment by “People frustrated with X.”
- Instead of “Companies >$10M,” segment by “Organizations ready to transform.”
This allows you to speak to the problem and the human, not just the category.