What Is Market Segmentation? Best Practices & Benefits

What Is Market Segmentation? Best Practices & Benefits

While all the buzz and hype around marketing these days seems to be around content creation, social media, and email marketing (who would’ve predicted this comeback), many digital marketers miss out on answering a fundamental question – Who should I be targeting with my marketing efforts?

Now, before the panic sets in, we want to tell you that you don’t have to pack your ring light away, nor do you have to delete that email sequence template that you downloaded from your favorite budding marketing guru’s website in the hopes of 100x-ing your conversions (spoiler alert, it’s unlikely to work).

No, there is a concrete and well-trodden method to optimize your time and resources so that your efforts actually lead to more conversions without landing up on countless mailing lists and being spammed by tens of wannabe Gary Vees.

Market segmentation is at the heart of the marketing process, aiding marketers in identifying accessible, distinct, and valuable groups of individuals or entities that they can earmark as potential users of their products and services. Gone are the days of wasting your promotional social media dances on Patrick, 61, who is looking for brisket-smoking tips online.

By determining the trends in the characteristics of your consumers and understanding the similarities and differences in their wants and needs regarding your offering, you can craft a laser-focused marketing strategy that is free from wastage and earns you customers for life.

Join us below as we dissect market segmentation, its value, its nuances, and how you can use its concepts to transform your marketing campaigns and your entire business. Effective marketing strategies have never been easier to craft.


What Is Market Segmentation?

In a technical sense, market segmentation is the first step in a marketing process known as the STP process (ah, yes, the never-ending love affair between marketing and acronyms), which stands for segmentation, targeting, and positioning.

The STP process enables marketers to create different market segments comprised of consumers with shared characteristics, beliefs, needs, and wants. Using these segments, marketers can tailor their approach when developing, promoting, and selling product and service offerings. Grouping these individuals into market segments based on similarities is necessary because of the immense variation in tastes and preferences that can be found within an individual customer.

Below is an explanation and expansion of each step of the STP process, including market segmentation.



Market segmentation, or marketing segmentation, refers to the process of breaking down the entirety of the market for your product or service into groups based on commonalities, often referred to as customer segments. These segments can be characterized by a variety of factors that will be explained later on. If there is insufficient data for customer segmentation, then the market segmentation process will entail considerable market research, whereby focus groups and other means must be used to obtain objective data. Performing this process in-house can be resource-intensive, and as such, market segmentation companies are often used for this purpose.



Targeting is the process whereby marketers decide on which customer segments they should focus. It is prudent to assess each customer segment in terms of its commercial feasibility and desirability to aid in this decision. A commonly used set of criteria is listed below:


  • Accessibility – A valuable segment is one that is reachable in terms of promotional efforts and other marketing endeavors. Additionally, a segment is only helpful if it is accessible through existing or prospective distribution channels. Even if customer groups want a particular product or service, if they cannot actually purchase it, they do not form part of a segment.
  • Benefits – The benefits sought by a given segment can increase or decrease its value in a marketer’s eyes. If a group of target customers is inclined to purchase a product due to a fundamental belief, then they are likely to be worth pursuing. For example, individuals opposed to the use of animal products do not purchase vegan leather exclusively for its aesthetic appeal. Instead, it offers them the look of leather within the framework of their underlying moral and value system. Conversely, some potential customers of vegan leather may only purchase items comprised of it due to its quality and appearance, and if a better product became available, in terms of quality and appearance, they would likely switch.
  • Discernibility – Ideally, customer segments should be easily distinguishable from others. The more unique a segment is, the easier it is for a marketer to target it with customized marketing campaigns. Overlaps between segments can lead to wasted resources.
  • Profitability – A segment is only valuable if it can afford the product or service in question at the price point, frequency level, and purchase volume necessary for profitability.
  • Size – A segment’s size is a crucial factor in terms of its desirability. If an ideal customer group exists, but it is composed of too few individuals or entities to justify financially targeting it, then it is not a desirable segment.



Once segments have been selected according to their viability, a customized marketing message can now be crafted for each segment. Due to the similarities and trends found within the market segments, stronger marketing messages can be formed that appeal to more fundamental characteristics of the targeted consumers.

Depending on the goals of their business and the resources at their disposal, marketers will select a few segments around which they build a concentrated strategy. These segments are known as the company’s target audience.


Target Audience vs. Target Market

Target markets refer to the overarching group of potential customers that may benefit from or purchase companies’ products and services. For example, there are many individuals within a given population that would buy pizza or find pizza useful when they are hungry. These people constitute the target market. In other words, these customers comprise the entire market for a given commercial offering.

A target audience refers to the chosen segments of customers within the target market that can form a solid customer base and generate sustainable revenue for a business.

A target audience within the target market described above could be defined as individuals of both sexes aged between 18-35 who purchase pizza at restaurants on a weekly and who have high levels of disposable income.

Organizations usually streamline their promotional strategy by narrowing down their various target audiences to a primary and secondary target market.

The Importance and Benefits of Market Segmentation

An effective segmentation strategy is an uncompromisable component of a successful marketing strategy. By grouping customers based on shared characteristics, marketers can more efficiently deliver a marketing campaign. Additionally, since the customers within these segments share similarities, it is easier to convey a cohesive and lucrative value proposition to them in a way that is not possible when targeting broad markets.

Since valuable segments contain individuals and entities that are accessible through similar channels, there is less wastage of a company’s marketing budget when a market segmentation strategy exists. Targeted digital advertising aimed at specific market segments also offers organizations maximum value in terms of promotional spending.

Market segmentation strategies allow companies to foster customer loyalty by centering sales efforts on consumers who genuinely value their commercial offering and, as a result, are more likely to engage in repeat purchases. As many business owners know, customer retention is often the lifeblood of a successful and flourishing commercial enterprise.

Overall, market segmentation is an essential tool for marketers and marketing companies because it helps them understand their target audience, target specific segments with high potential for growth, and optimize their marketing efforts for maximum effectiveness. Additionally, a sound market segmentation strategy can help identify new markets filled with loyal customers for a company’s offering.


Market Segmentation Bases

As previously mentioned, there are various dimensions across which the target market can be divided and across which market segments can be formed. These dimensions are collectively known as the bases of market segmentation, and they are explored in detail below so that you may use them in your own market segmentation strategy.


Geographic Segmentation

Geographic segmentation entails grouping customers according to geographic data, such as where they live, work, and engage in recreational activities. This dimension of segmentation is generally considered the least predictive of future behavior across many industries when compared to the other types of market segmentation. A customer’s location may determine their predilection for purchasing an umbrella or sunscreen, but individuals and entities that are even situated on the same street may have vastly different beliefs, preferences, and views. As such, for purchases that pertain to morals and values, facets that influence whether or not a household prefers to consume ethically-sourced coffee, geographic segmentation is not highly accurate. However, in some instances, building an audience based on geographic regions is entirely appropriate, such as companies that offer food delivery services.


Demographic Segmentation

Demographic segmentation involves grouping customers based on characteristics such as age, gender, income, education, family size, and occupation. Generational segmentation is a type of demographic segmentation that divides customers into different generations, such as baby boomers, Gen X, Gen Y, and Gen Z. This can be useful for marketers because different generations often have different values, attitudes, and behaviors, and may respond differently to marketing messages. For example, a customer journey targeting Gen Z may need to be more interactive and use social media platforms, while one targeting baby boomers may need to be more traditional and use print media. While demographic segmentation can be useful in identifying trends and patterns in consumer behavior, it is pertinent to note that there are better predictors of an individual’s preferences or behaviors. Factors such as personal values, experiences, and cultural influences can also have a significant impact on an individual’s purchasing decisions. Demographic data is often paramount when implementing market segmentation strategies.


Psychographic Segmentation

Psychographic segmentation involves dividing the market based on lifestyle, values, attitudes, and personality traits. This type of segmentation can be helpful for marketers because it allows them to target their promotional efforts to specific groups of consumers who share similar characteristics psychologically. For example, social media marketing targeting consumers who value environmental sustainability and social responsibility might focus on the eco-friendliness and ethical sourcing of a product, while a campaign targeting consumers who esteem luxury and status might focus on the exclusivity and prestige of a product.

Previously, it was challenging to find psychographic data for a given market segment, but with the advent of social media, customers are more public and vocal than ever before about their beliefs and values.

While psychographic segmentation can be an effective way to target specific groups of consumers, it is critical to note that it is not a perfect predictor of individual behavior. Personal circumstances, experiences, and other factors can also influence an individual’s purchasing decisions. By appealing to the aspects of self with which individuals identify, organizations can encourage customers to make repeat purchases, fostering a sense of brand loyalty.


Behavioral Segmentation

In many cases, behavioral segmentation is the most accurate predictive of past behavior among all of the other types of market segmentation; however, it is also the most difficult to obtain. Behavioral segmentation can be based on information such as customer data, which would include details of previous purchases and trends in a customer’s buying behavior. This segmentation allows companies to direct their marketing efforts to specific groups of consumers who exhibit certain behaviors. For example, a campaign targeting heavy users of a product might focus on the convenience and reliability of the product, while a campaign targeting brand loyalists might focus on the emotional connection they have with the brand. This type of market segmentation can also be used to identify potential new customers by targeting those who have shown an interest in a product or brand but have not yet made a purchase. Data analysis of behavioral data can be used to predict the reaction of a target customer when they are exposed to a company’s offerings. While behavioral segmentation can be an effective way to target specific groups of consumers, it is important to note that behavior can change over time, and marketers need to be aware of any changes in consumer behavior in order to adjust their efforts accordingly.


Firmographic Segmentation

The above types of market segmentation are handy for organizations that market and sell products and services to consumers (B2C marketing); however, for organizations that sell to other businesses (B2B marketing), a different approach is often practical.

Firmographic segmentation involves classifying businesses and other entities (such as non-profits) by factors such as:

  • Industry (retail or mining sector)
  • Size (number of employees)
  • Organization type (LLC or S corporation)
  • Age (number of years in operation)
  • Financial performance (revenue, profit margin, etc.)

Even when selling to other organizations, market segmentation helps in compartmentalizing different customers into part of an actionable market segment.


Segmenting Success: The Key to Targeted Marketing

Even the best product or service runs the risk of falling flat when you don’t know to whom you’re selling. If you take away one piece of wisdom from this blog, remember that in any successful marketing strategy, there is a clearly defined target market that has formed through market segmentation.

If the process seems daunting to you or you’re keen to learn more about marketing segmentation, sign up for our newsletter — where you’ll receive industry insights with some humor sprinkled in. You can also schedule a free call with us — we’d love to hear from you.

5 Facebook Marketing Tools Small Businesses are Leveraging in 2021

5 Facebook Marketing Tools Small Businesses are Leveraging in 2021

Facebook marketing is always changing.

Just when you think you’ve got the hang of things Facebook decides to update their algorithms.

Or there seems to be other players making it difficult for regular Facebook marketers.

Like Apple allowing iPhone users to decide which third-party apps to share information with.  Things seem to be getting more challenging for small businesses using Facebook for marketing.

And yet, there are businesses that get traffic from Facebook in spite of this chaos. They have effectively adopted new tools that give them leverage on a daily basis.

What that means is …

… it’s not too late to get started with Facebook Marketing. 

This article will review the latest marketing tools that small businesses are using, right now, to thrive in a marketplace where most others are getting eaten alive.

If you are a small business in the digital marketing space you might want to use them too.

But first, let’s see…


Why Facebook is important for marketers 

With more than 2.7 billion monthly active users Facebook is a massive traffic juggernaut. The sticky nature of Facebook makes 1.78 billion users visit the platform daily. 

Facebook monitors every users’ behavior. It tracks every like, comment, share, as well as pages that you visit and even the ads that you click.

Based on this data Facebook can accurately guess your interests and then show you advertising that fits those interests, thereby increasing the chances that you will respond to the advertisement. In this way Facebook accurately connects the marketer with the market.  

Given the potential you really cannot keep Facebook marketing out of your marketing strategy.

Facebook allows you to reach out to your audience in an individualized way. This is not possible with Websites and blogs.

According to a survey 83% of marketers say Facebook is crucial for their businesses. Big brands also use Facebook to promote their products and engage with their customers. 

Facebook has an awesome set of marketing tools that almost no other platform offers.

However, most businesses do not take advantage of these. Probably the most they would have is a business page and that’s about it. So let’s go deeper and see what these tools are.

The first marketing tool we are going to look at is…




Facebook Live has become very popular in recent times. And rightly so. 

The level of real time interaction it affords is unparalleled.


Why use Facebook Live

Facebook Live viewership increased by 50% — in spring 2020. Facebook Live videos receive 6X more engagement than standard videos.


How to Use Facebook Live

You can use Facebook live to hold conferences and concerts. You can make your audience feel special by conducting interactive sessions. You can hold trivia nightsQ&A sessions,  and share behind-the-scenes juicy gossip. 

These unplugged and uncut sessions and real-time interactions gives your brand an authentic personal feel. 


Why this works

Your audience gets to interact with your brand directly. They get to join a live conversation and get queries answered in real time. You can judge their support by watching how they react and comment. 



Facebook Messenger is a revolutionary way to reach out and grow your audience. When Facebook allowed users to operate with bots they offered an amazing opportunity for marketers to generate traffic and get more members.

Messenger bot is an AI powered chat software that uses technology to simulate conversations with customers. 

Why You Should Consider Messenger Bots

1.3 billion FB messenger monthly users and 40 million businesses use Facebook Messenger to communicate with their customers (Business Insider, 2020).

It empowers you to automate your interactions with people trying to get more info about your business. It allows for real-time communication with a personal touch on your Facebook page.

How to Use Facebook Messenger Bot

Consider this…

… a prospect may have certain questions that your page doesn’t provide.

This is where Facebook Messenger comes in. Facebook Messenger gives you stopgap and catch-all communications options.

It’s simply impossible to anticipate every query that a prospect could have. 

The good news is you don’t have to.

Messenger bot makes you accessible with a wide range of questions. 

And because all sessions are recorded and stored, you can even message them back later if your bot didn’t have the answer ready at the time.

You can track all such sessions where the Messenger bot didn’t have the answer and look for repeating patterns. Once you detect a pattern you can automate the messenger bot to answer the question based on a decision tree.

This is like your potential customers calling a call center. The representatives in the call-center follow a pre-designed script to standardize responses, anyway.

You can use the automated bot to:

  1. Qualify leads by asking your visitors a few qualifying questions before someone follows up.
  2. Sell the prospects who are ready.  Walking prospects through an automated sales funnel can lead to conversion and less customer drop-offs.

How great it would be if the vast majority of people visiting your Facebook page were actual buyers.

But in reality, that’s not the case. Most of the people on your page are not ready to buy. They are not even clear about what they’re looking for or what they need.

They have lots of doubts.  And this presents an opportunity to interact with them and dispel their doubts. This page-based automation can thus lead to actual sales. 

  1. Respond to comments. When somebody visiting your page leaves a comment, it just stays there until you view the comment and respond.

The moment somebody leaves a comment on your post on your page it could trigger your Messenger bot to reply.

You get to send out an initial automatic response and then you follow up, afterwards, if required.


Why This Works

This saves you a lot of time and money as far as standardized communication goes. It is easily scalable and can be automated. Automating a process takes workload off your team.

It offers real-time interaction and is able to handle queries and convert a prospect with prompt and accurate communication without any hassles. 





Today, more and more people are interacting with Augmented Reality (AR). 

Why Use AR Ads

According to the Boston Consulting Group (BCG), 80 million people in the US engage with AR on a monthly basis. 

They predict that this number will grow to more than 120 million this year.

Facebook AR ads appear in Facebook Mobile News Feed. They allow users to tinker with your brand’s AR effects with a single click while they are still viewing the ad.  


How to Use AR Ads

New AR Ads allow users to virtually experience your products.

You can add a CTA within the ad to take users from trying your product to buying it.

Michael Kors was the first brand to test AR Ads in News Feed.  Their ad let audiences try on a pair of sunglasses before deciding to buy.


Why They Work

AR Ads get more viewtime than regular ads.  

AR Ads are rich in content and are more engaging, more involving and relate on a personal-basis with your customers. 

They entertain when prospects are feeling bored or enjoying some free time. 

This gives your Ads more time with your prospects, unlike when they are in a hurry, distracted or searching for information.





Facebook Stories are either an image or short video post in vertical format that disappears after 24 hours. 

Photos appear for five seconds, and videos can be up to 120 seconds long.


Why Use Facebook Stories

Facebook Stories appear above the News feed. 

Imagine… your fans will see your brand first when they open their Facebook app.. 

Is it any wonder that  500 million people view Facebook Stories every single day? 


How to Use Facebook Stories

Create exciting, time-sensitive content. The “24-hr-life factor” is what gives stories excitement and urgency. 

You can use this to announce daily  sales, share discount codes, share early bird offers, etc. 

Collect Data Use stories to get your fans to respond to surveys and polls.  


Why They Work

With ever-changing Facebook algorithms, it’s hard to get organic reach. If a brand wants to get their name out there they need to pay for the engagement and views.

Facebook Stories live at the top of the News Feed, which means they beat the Facebook algorithms.  

This means you can get your message in front of your fans without having to pay for the exposure. And it might just be the easiest way to make a viral video.


5. FB Shops



Facebook Shops is the potential last-mile application to actually making money off Facebook.

All the other tools help you get your message out to your prospects, but you need to take them somewhere else to actually transact and make a sale. 

But it’s not so with FB Shops. Because, here you can actually sell and make money!

Facebook Shops is a mobile-first shopping experience. 

Now you can create an online store within Facebook and Instagram for free. 


Why Use Facebook Shops

You get to leverage the reach that Facebook has to promote your products. 

It’s totally customizable. You choose your brand colors, fonts and  tell your brand story the way you want. You decide which items you want to feature and merchandise.  

Thus giving you complete control over your shop. 


How to Use Facebook Shops

Facebook Shops lets you connect with customers through WhatsApp, Messenger or Instagram Direct. You can answer questions, offer support and more.

People can find your FB Shops on your business’ Facebook Page, or discover them through stories or ads. 

Then they can browse the full collection, save products they’re interested in and place an order. Orders are placed either, on your website, or within the app.

What if you have some queries? In Facebook Shops you can send your question through WhatsApp, Messenger or Instagram Direct. 

Besides  asking questions, you can request support, track deliveries and more.  

Another cool feature that works with FB Shops is, now you can tag products from your Facebook Shop or catalog in your FB live video. 

And those products will appear at the bottom of the video so people can easily tap to learn more and buy.


Why They Work

With Facebook Shops, you leverage the reach offered by Facebook.

You can not only display, but also sell products on Facebook and Instagram. 

People who visit your shop can make purchases and get to know your brand. This way you can leverage your investment in Facebook marketing. 



As the marketing terrain of Facebook becomes more challenging, it tends to become unviable for regular marketers. It is such scenarios that small and new businesses find leverage in new and innovative tools. 

Using tools like FB Live, Messenger Bots, FB AR Ads, FB Stories & FB Shops even new businesses can leverage the reach and marketing muscle provided by Facebook.