Market Segmentation - Meaning, Basis and Types of Segmentation

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Offline Badshah Mamun

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What is Segmentation ?

Segmentation refers to a process of bifurcating or dividing a large unit into various small units which have more or less similar or related characteristics.

Market Segmentation

    Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference.
    A market segment is a small unit within a large market comprising of like minded individuals.
    One market segment is totally distinct from the other segment.
    A market segment comprises of individuals who think on the same lines and have similar interests.
    The individuals from the same segment respond in a similar way to the fluctuations in the market.

Basis of Market Segmentation


    The marketers divide the market into smaller segments based on gender. Both men and women have different interests and preferences, and thus the need for segmentation.

    Organizations need to have different marketing strategies for men which would obviously not work in case of females.

    A woman would not purchase a product meant for males and vice a versa.

    The segmentation of the market as per the gender is important in many industries like cosmetics, footwear, jewellery and apparel industries.
    Age Group

    Division on the basis of age group of the target audience is also one of the ways of market segmentation.

    The products and marketing strategies for teenagers would obviously be different than kids.

        Age group (0 - 10 years) - Toys, Nappies, Baby Food, Prams
        Age Group (10 - 20 years) - Toys, Apparels, Books, School Bags
        Age group (20 years and above) - Cosmetics, Anti-Ageing Products, Magazines, apparels and so on


    Marketers divide the consumers into small segments as per their income. Individuals are classified into segments according to their monthly earnings.

    The three categories are:

        High income Group
        Mid Income Group
        Low Income Group

    Stores catering to the higher income group would have different range of products and strategies as compared to stores which target the lower income group.

    Pantaloon, Carrefour, Shopper’s stop target the high income group as compared to Vishal Retail, Reliance Retail or Big bazaar who cater to the individuals belonging to the lower income segment.

    Marital Status

    Market segmentation can also be as per the marital status of the individuals. Travel agencies would not have similar holiday packages for bachelors and married couples.


    Office goers would have different needs as compared to school / college students.

    A beach house shirt or a funky T Shirt would have no takers in a Zodiac Store as it caters specifically to the professionals.

Types of Market Segmentation

    Psychographic segmentation

    The basis of such segmentation is the lifestyle of the individuals. The individual’s attitude, interest, value help the marketers to classify them into small groups.

    Behaviouralistic Segmentation

    The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand.

    Geographic Segmentation

    Geographic segmentation refers to the classification of market into various geographical areas. A marketer can’t have similar strategies for individuals living at different places.

    Nestle promotes Nescafe all through the year in cold states of the country as compared to places which have well defined summer and winter season.

    McDonald’s in India does not sell beef products as it is strictly against the religious beliefs of the countrymen, whereas McDonald’s in US freely sells and promotes beef products.

Md. Abdullah-Al-Mamun (Badshah)
Senior Assistant Director
Daffodil International University