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Segmentation is the process of separating market dynamics such as market, brand, product, service and customer into artificial groups – segments – according to similar characteristics in terms of selected criteria. Although there are many types of segmentation market, customer and product segmentations are most commonly used ones.
There are multiple methods of segmentation. Location-based segmentation both considers geography and location to segment consumers or the market. For example, customers’ and/or markets can be segmented by considering factors such as living and working spaces of consumers, and economic geography of the market.
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Demographic Segmentation
Demographic segmentation is a segmentation conducted with demographic parameters such as age, gender, income status, ethnicity and education level.
Behavioral Segmentation
Consumers are segmented according to criteria such as usage, awareness, loyalty, information, liking and buying habits in behavioral segmentation which shows similarity.
Psychographic Segmentation
Psychographic segmentation segment the market by criteria such as lifestyle, values, consumption habits and social classes.
Location-Based Segmentation
Location-based segmentation is a segmentation that considers geographical data as well as other data types to segment consumers and/or market.
