4 Types of Market Segmentation

What is a company without its consumers? Many companies position a tremendous highlight on their audiences for that specific question, and there are many benchmarks. One of those is market segmentation. In short, companies adopt the latter technique to separate their possible consumers into various divisions. That lets companies distribute reasonable resources to its multiple segments. In turn, companies achieve more precise targeting through diverse marketing campaigns. Market Segmentation also includes different types, which are demographic, psychographic, behavioral, and geographic. This blog will focus on those types, discover the patterns of market segmentation, and provide examples of them.

What are the levels of market segmentation?

Market segmentation is also distributed to different divisions for a more efficient and targeted approach. Market segmentation has different levels, and those also, in turn, have unique characteristics. Marketers have to be mindful when adopting the levels of market segmentation for an impactful promotion, production, and distribution of goods to their target consumers.

The primary market segmentation levels are mass marketing, segment marketing, local marketing, and individual marketing.

Mass marketing is when one item is marketed to the whole market with a single strategy. Mass marketing revolves around the characteristics, consumption patterns, and behaviors of people in the market. This level of market segmentation does not determine the entire market by concentrating on attributes like the customers’ needs, tastes, age, preferences, sex, etc. Mass marketing is also referred to as undifferentiated marketing.

Mass marketing also revolves around actions at a mass level, such as distributing, producing, and promoting a single product to all possible purchasers.

If a company uses the mass marketing market segmentation strategy, it will reach all possible consumers in the country. That is, if the company works at a national level.

If the firm’s operation is international, it could target various territories by assuming its capabilities.

Mass marketing assists companies in bringing economies of scale, reaching larger markets, more extensive sales, and more gains. However, it also constructs an elevated competition level.

The following market segmentation worth mentioning is segment marketing. The name already implies that segment marketing aims to separate the entire market into different segments according to consumer consumption, spending, purchasing patterns, social values, geographical location, etc.

Since segment marketing distinguishes the whole market into numerous segments, I also refer to it as differentiated marketing. The leading and most attractive advantage of segment marketing is that it allows marketers to get the real issues of every segment and react in the best possible manner.

The leading companies that have various product types typically concentrate on segment marketing. For instance, a car company can explain itself as producing low-cost cars and providing luxurious driving, performance-based experiences, etc.

The firm can make better sales by striking the eye of all markets. It can also satisfy every targeted segment, as well as heighten the amount of payoff. But, of course, for every market segment, the company must embrace a different marketing strategy, which is only realistic for all companies.

The next market segmentation level we will speak of is local marketing. It is a much simpler method, and we can also explain it. This market segmentation level markets goods or services to local markets and areas. An example of this is when locally produced items are also marketed locally. Another example is when farmers sell their fruits to their communities, neighborhoods, people, and other citizens of their villages.

Marketers could target local consumer groups, neighborhoods, villages, small regions, local markets, and concrete stores. The item features may be constructed of organization, local appeals, local usage, flavor, etc.

The local marketing market size is comparably tiny. The distribution and production costs could be elevated for local marketers because of low production. Yet, there is comparably intense competition, and competitors need more support in joining such local markets.

The last market segmentation level we will discuss is individual marketing. Like local marketing, this is also simple to grasp. In particular marketing, marketers concentrate on fulfilling the wants and needs of individual customers. This level of market segmentation is also called customized marketing and one-to-one marketing. The latter is a micro-marketing strategy where a targeted consumer is suggested a customized item or service.

This market segmentation level is similar to direct marketing. In that method, the marketer individually meets, communicates, and suggests his services to the targeted consumer, as well as through customized messages. This marketing strategy is primarily utilized in B2B marketing, in which the marketing of the goods is a more highlighted aspect.

To market an individual, the marketer could concentrate on the customer’s profile, buying behavior, sentiments, wants, personal needs, hobbies, location, etc. The targeted consumer in individual marketing has more spending habits and is more wealthy. Therefore, the marketer could be more entangled.

What are the patterns of Market Segmentation?

Patterns of market segmentation revolve around the multiple manners in which consumer choices and manners are spread within the market. There are three standard patterns of market segmentation, which are homogeneous preferences, defused preferences, and clustered preferences.

We are going to discuss these patterns one by one.

In the Homogeneous Preferences pattern, consumers in the market showcase similar wants and needs, as well as behaviors and selections. They are incredibly identical regarding their buying behaviors, needs, and preferences. The result of this pattern is that companies can develop a universal marketing strategy and personalized suggestions to the preferences of this segment.

For instance, a fundamental commodity such as table salt usually showcases homogeneous preferences because most customers share comparable preferences and needs for this item.

The second market segmentation pattern, Diffuse preferences, takes place when consumers in the market share different and diverse preferences. Consumers share no specific clustering or separate preference pattern within the market.

Consumers could hold different preferences in terms of needs and behaviors, making it difficult for companies to pinpoint typical segments or develop targeted marketing strategies.

In instances like this, companies could lean towards a more universal marketing approach that looks forward to feeding the demand for a broader scope of customer preferences.

For instance, specific fashion trends could have diffused preferences where customers have different preferences and options.

The last market segmentation pattern is clustered preferences that revolve around a pattern where consumers in the market can be divided into different segments or clusters according to their shared behaviors and preferences.

Every cluster showcases a varying preference set and calls for a personalized marketing approach.

The clustered preferences pattern lets companies unravel and target precise segments with personalized marketing offerings and strategies.

For instance, various consumer segments could have clustered preferences regarding vehicle type, price range, or fuel efficiency in the automobile segment.

Market Segmentation Examples

Now that we have a theoretical understanding of market segmentation, let’s put everything into practice. A great way to do this is to take a look at market segmentation examples. We will discuss Fulfillers and Hedonists.

Firstly, let’s discuss Fulfillers.

Lifestyle and values:

In the life of this segment, nothing is more important than a career. It involves much more than just generating revenue. It’s essential to discover oneself and keep growing as a person. Even if it means taking risks and not knowing if the outcome will be favorable, they have high goals and are always searching for innovative ways to progress their jobs.

To achieve this, fulfillers are willing to go above and beyond, even if it means spending less time with their families.

Furthermore, this section is modern. They like to be updated on everything, including movies, TV shows, music, and technology.

Technology has a slightly greater significance than other things. This market group learns about the rapidly growing sector and regularly purchases new tech appliances.

Fulfillers indeed continue their rigorous routine during the workweek. Weekends, however, are a different story. They’re all about relaxing and having fun.

If a Fulfiller turned down your invitation during the week, consider inviting them on a Saturday or Sunday.

Attitudes towards shopping:

This market is not limited to one particular brand. They do, however, mainly purchase goods from upscale retailers. Price is irrelevant when it comes to premium goods that buyers are sure they want.

New products must be purchased by fulfillers as soon as they are released.

This market occasionally makes snap decisions, particularly regarding startup businesses.

This is not to say that Fulfillers stop supporting the brands they already love.

Another hobby that might be expensive for their wallets is shopping. This group can spend money on nothing more than making themselves feel better.

Other interesting facts:

• Fulfillers enjoy going to cafes, bars, pubs, and other territories to gather with friends
• They prefer eating out and experimenting with tasty new foods.
• This segment frequently travels and keeps a list of countries that they have visited
• Leading an active lifestyle is another crucial aspect of the life of this segment
• Fulfillers mainly utilize media for entertainment purposes.

Let’s now look at Hedonists.

Lifestyle and values:

Because individuals only have one life to live, Hedonists strive to make it as enjoyable and pleasurable as possible. They would engage in risky and exciting activities purely to enhance their enjoyment of their time.

Hedonists enjoy socializing. They frequently go out with their fantastic set of friends. Although this group always wants parties, shopping with them is still fun.

Hedonists are change-oriented. They never hesitate to take chances, alter careers, or even pals if necessary. This group is quickly bored. Hence, their partnerships are typically fleeting. They enjoy traveling to different locations to socialize with new people.

This market buys new things as soon as they are released. In an attempt to stay current, they strive to buy new things all the time. One of their loves is keeping up with fashion.

Hedonists are aestheticists. They put a lot of effort and time into how they look. However, it is also advantageous because these individuals pay more attention to themselves.

This group enjoys taking charge at work. Money is their primary source of motivation in their work. Hedonists also hold “macho” views. They believe that guys shouldn’t cry, that drinking is for getting wasted, etc.

The family is ranked lowest on the list of priorities of hedonists due to their busy lifestyle. However, this group occasionally has lunch with their family on Sundays or breakfast during the week.

Attitude towards shopping:

The majority of hedonists buy mainstream brands. They believe that a person’s image is improved by wearing brand labels. This market likes to stand out from the crowd. That is even evident in the things they buy.

You might be shocked to learn that Hedonists frequently value quantity over quality. They never schedule their shopping days in advance and are impulsive purchasers.

This group typically purchases goods from smaller retailers. They have an excellent time attempting to locate the top merchandise.

Hedonists will buy from homegrown labels if they are in style.

Other interesting facts:

• Hedonists hang out with friends as much as possible, visiting places like bars, pubs, cinemas, cafes, etc.
• Consume newly released movies
• Enjoy playing gambling machines or games to calculate their luck
• Visit exhibitions that interest them
• They are not typical social media users
• Media acts as an entertainment tool for them
• They are average magazine consumers and below-average TV consumers

And that concludes this blog! We discussed the levels and patterns of market segmentation and looked into two examples of market segmentation: Fulfillers and Hedonists. Do not hesitate to stop by our main website for more useful marketing-related content!