Get a quick refresher on market segmentation

A woman in an office learns about market segmentation.

Market segmentation is a strategy for dividing a target audience into specific groups to create tailored and personalized outreach campaigns.

You may be familiar with the idea of market segmentation, but you’re looking for more information on different types of segmentation or are unsure of how to implement it effectively into your marketing strategy.

In this article, you’ll learn how your company can grow and improve its products and services by segmenting your target audience and creating tailored and personalized outreach campaigns. Specifically, we will cover:

What is market segmentation?

Market segmentation is the process of a business separating its target market into subsections or groups to make marketing efforts more refined. Once a company divides its market into segments, it can closely tailor its products to the needs, desires, uses, and budgets of the clients and customers.

Market segmentation also allows businesses to concentrate their resources, money, time, and effort on a profitable market, allowing it to grow in numbers, usage, and value.

Follow these guidelines to implement a market segmentation strategy:

Types of market segmentation

There are four main types of market segmentation:

There are four main types of market segmentation: behavioral, geographic, demographic, and psychographic.

Benefits of market segmentation

Knowing what market segmentation is, how it works, and what the benefits are for your organization can help you implement this strategy effectively. Some of the many advantages of market segmentation include:

Get started with market segmentation

Market segmentation helps a business better target its marketing efforts. Begin implementing this method in your company by identifying segments in your target market that are actionable and accessible.

You’ll need to collect data from your customers and target market, and then analyze it to better understand their needs. Adobe Analytics can help you do this. More than an analytics solution, it takes data from any point in the customer journey and turns it into a real-time insight that guides your next best action.

Watch the product overview video.

Another resource you can use to do better market segmentation is Adobe Audience Manager. This data management solution collects and merges information from practically any source, building intelligent audience segments that give you a complete view of your customers.

Watch the two-minute product tour.