[Video] 4 Main Types of Market Segmentation and Their Benefits

4 min readApr 7, 2020


Market Segmentation, Demographic Segmentation, Geographic Segmentation, Behavioral Segmentation, psychographic segmentation,

Market segmentation is a key top tool for any brand looking to create a valuable, relevant and successful marketing campaign.

I’m Stevie Langford from Hurree, the platform that makes targeting users easier through automated segmentation. Have a peek at the video below where I talk about the 4 main types of market segmentation and the benefits of incorporating them into your marketing strategy 👀

First of all, what is market segmentation?

Market segmentation is essentially the process of dividing and grouping your users based on commonalities and shared characteristics, such as interests, needs, wants, and motivations.

The aim of market segmentation is to enable brands to better target their products, services or content, making sure they reach the right users, in the right place and at the right time.

So what are the 4 main types of market segmentation?

#1 Demographic segmentation. This is arguably the most basic of the segmentation types. Demographic segmentation divides a group or population based on variables like age, gender, income, occupation, education level, marital status, religion or nationality. And it’s usually one of the first stops when brands begin to segment their users.

Why? It’s because demographic information is easy to collect, simple to measure and analyze, and it’s cost-effective. On the flip side, it has been criticized for being vague, or based on assumptions, and not taking into account the needs and wants of individual consumers.

#2 Geographic Segmentation. Geographic segmentation basically groups users based on their geographic details. Similar to demographics, geographic tends to be objective, so it is essentially based on facts about the individual. The 5 key areas that marketers take into account when segmenting geographically are:

#3 Behavioral segmentation. Behavioral segmentation does what it says on the tin — it segments users based on their behavior in a store, on a website or in an app. Behavioral data tends to be gathered and analyzed through particular algorithms or with tools like Google Analytics.

These tools and algorithms are able to track users’ ‘dwell time’ on a website, a website’s bounce rate, online or in-store actions, communications with the brand and whether they are new or returning users.

Big brands such as Spotify and Netflix are at the top of their game when it comes to behavioral segmentation, offering things like Spotify’s ‘Recommended Daily Mix’ or Netflix’s ‘Top Picks for [insert the user’s name]’.

#4 Psychographic segmentation. Arguably one of the most subjective and difficult to quantify, but also the most valuable, psychographic segmentation focuses on a user’s psychological attributes, such as personality, values, attitudes, opinions, interests, and lifestyles.

Psychographic data can be collected through surveys, interviews or, most commonly, using analytics data gathered from Google, or social media, where users often freely reveal personal information, like their favorite tv shows, their political views or how much sourdough toast they had for breakfast.

The benefits of using psychographic data in your marketing strategy can’t be overlooked. Psychographics offer such a personal look into what consumers like, dislike, need, want and love. But it’s not all roses, because psychographic information is definitely the most subjective of the segmentation types, and psychographics, in particular, can be harder to collect and analyze. Marketers must also make sure that information is interpreted properly, and for the right reasons.

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So let’s re-cap our main points:

Number 1: Demographic segmentation. This data is easy to collect, it’s based on facts, but doesn’t tell us much about the real person.

Number 2: Geographic segmentation. Similar to demographic, geographic information is simple to collect and analyze, but doesn’t give us insight into our users as individuals.

Number 3: Behavioral segmentation. It’s one of the best ways to get to know your consumers as people and then personalize content based on their actions and interests.

Number 4: Psychographic segmentation. It lets you get to know your users better than ever. Taking into account things like someone’s values, opinions, interests, and lifestyles is so important for completely personalizing experiences.

So, there you have it. The 4 top market segmentation types. Now these aren’t mutually exclusive, multiple segmentation types can be used together and can really complement each other, drawing actionable insights for more accurate segmentation and analysis.

Overall, segmentation helps to focus marketing efforts, making sure products, services and campaigns are streamlined and delivered to the most appropriate audience for that brand.

Each segmentation type will have its benefits and its drawbacks. So it’s important to always remember to respect the privacy of your users and make sure you’re transparent in your endeavors.

To find out more about market segmentation, subscribe to our YouTube channel. And for even more info on optimizing your marketing strategy, head to Hurree.co and check out our resources page, it’s all free!

Finally, we’d like to hear from you. Are you going to start using segmentation in your marketing strategy? Or maybe you’d like to share some of your own info that we might have missed.

Let us know by leaving a comment below.

If you’d like more detail about the topics discussed in this video, don’t hesitate to get in touch via stevie-rose@hurree.co. To find out more about the benefits of personalization you can download our free guide:The Naked Truth to Personalization.

Originally published at https://blog.hurree.co.




Hurree is a Pinboard for your Analytics 📍 Collect data from across all of your tools to create effortless company reports on one dashboard ➡ www.hurree.co