What is Market Segmentation? – Ultimate Guide!

You know how important it is to know the market well and to analyze your competitors, target audience, and others correctly. In order to do this, it is necessary to divide the masses and define their basic characteristics. The main thing that will enable you to do this is to achieve segmentation. Today, we will talk about a very important concept for those who have an e-commerce site or who want to somehow show their power in a certain sector. Market segmentation is a very useful method when you position yourself in the market and manage to stand out by identifying different actors. The groups you evaluate by dividing them into small categories begin to become easy for you to analyze, follow and manage. This means getting strong results in a shorter time, increasing your competitive power, and knowing where and how much you need to improve.

We, as Screpy, are working harder every day and trying to increase your chances of gaining full control over your site. Exactly for this, we offer you a powerful tool that we can define as an all-in-one. If you manage to maintain the basic analysis, segmentation, and tracking power of digital marketing while using this tool, we are sure that you will get great results. If you are ready now, let’s start exploring the market segmentation in detail together.

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What is Market Segmentation?

Market segmentation is categorizing your target audience according to certain characteristics and attributing certain interests, affinities, and purchasing potential to them. In this way, you will have the chance to strengthen step by step with methods that appeal to different small segments in your marketing or sales strategies. Performing market analysis for your brand will mean achieving:

What is Market Segmentation?
What is Market Segmentation?
  1. You can have a different, more sophisticated brand than your competitors.
  2. You target larger audiences at the micro-level. You can have the knowledge and skills to target a huge group with a hundred different market segments at the same time.
  3. You can know which marketing tactics have a higher impact and which are relatively less effective. This allows you to achieve really strong results in a short time. Also, knowing which tactics work will mean not wasting your marketing and promotion budget on channels that won’t work.
  4. Marketing segmentation allows you to understand in which periods your audience is more likely to buy, and to discover the periodic habits of your audience. Accordingly, you can organize your brand’s promotions, campaigns or promotional processes accordingly.

Market segmentation allows you to create not only up-to-date tactics, but also long-term marketing and brand equity plans. Because basically, thanks to this process, you get to know your customers better and discover their future plans, values, age ranges, and periods in life.

Remember that you have to know your audience well to get stronger results in segmentation processes. Knowing your audience well will also help you identify small groups within that audience.

What is Considered in Market Segmentation?

In order to make an effective and powerful segmentation, you need to determine the characteristics of the sub-segments of your audience within the framework of certain criteria. It is very valuable to train yourself correctly so that you can ask the right questions that will make segmentation work. We will share some information with you to share the basic criteria and understand the key features of the categories you will create during the identification process.

What is Considered in Market Segmentation?
What is Considered in Market Segmentation?


First of all, pay attention to the location. In which city, country, or on which street does your target audience generally live? If you’re targeting local SEO and you’re a local business, even the street name will change the answer. So your overall goal and objectives will also change how location customization works.

Demographic features

Secondly, what you need to do is determine the demographics. Demographic characteristics refer to the criteria by which individuals define themselves. In general, the demographic characteristics of your audience determine the age, gender, religion they believe in, their socio-economical classes, education processes and levels, and whether they live with their families or not. Such details help with the most basic segmentation. For example, seventy percent of a brand’s customers may be women and thirty percent men. This will drastically change what core values ​​the audience is marketing to. If the audience is university graduate in general, the language to be used may be more sophisticated, while the advertisement to be prepared for a primary school graduate audience can be planned differently. Therefore, it should be noted that the criteria to be considered in the audience segmentation process are very diverse.

Psychographic Stories

It is really important to understand the interests of the audience in general, to define their hobbies and core values. Who influences your audience? Which social media phenomena, political characters or ideologies reflect the core characteristics of your audience? To which brands does your audience have loyalty and what are the core values ​​that these brands stand out? At what price range is your audience ready to buy products? While purchasing, is your audience focused on need or luxury? It will be helpful to answer all of these questions and to understand the general characteristics of audiences.

Behavioral Features

It is important to understand how the shopping behaviors of the masses are shaped in their daily lives in general. For example, how many of your audience prefer online shopping? How many of this audience prefer to trade directly with the traditional shopping method? How are these rates formed? How many of the audience need persuasion to shop online? How many of the audience should be convinced of the product directly rather than that? The answer to all these questions will provide you with very valuable information about what you should focus on in your promotion and marketing activities. The approaches of your audience to brands, prices and discount periods will also be effective in determining your general marketing and customer relations processes.

General Media Specifications

What media channels does your audience use? Which ones are used to get news or get to know the world? Which ones are used for everyday life and entertainment? Which social media platforms or which social media platforms does your audience follow in general? In general terms, what are the newspapers your audience reads or the television channels they follow?

The answers to all these questions reveal which channels you should choose to communicate with your audience, and in this way, you can achieve much stronger results in a very short time. To strengthen the ROI and conversion rates you get from your ads, it is extremely important to deliver them in the right contexts.

How Should Those Who Have B2B Company Model Segmentation?

When you examine the basic criteria listed above, you may have noticed that we provide information for companies that generally appeal to individuals and work with the B2C model. But most of the companies may be interested in B2B marketing. For those who don’t know, let’s explain both concepts in detail:

How Should Those Who Have B2B Company Model Segmentation?
How Should Those Who Have B2B Company Model Segmentation?

  1. B2B is a business model in which a firm serves not individuals but other firms.
  2. B2C is a business model where a firm serves individuals, not firms.

If your company has targeted the B2B model, following the segmentation targets above will not work. Because companies do not have a religion they believe in, hobbies they do in their spare time or gender. So, which market segmentation criteria will you use instead? In this part of the content, we will inform you about this topic.


To put a customer in a demographic, you would ask their gender, age, religion or other key characteristics, right? To understand the demographic characteristics of a company, it is necessary to extract its firmography. It is possible to extract a firm’s firmography by asking the following questions:

  1. How big of a company are we talking about? How many people work in this company? What business lines does the company employ? What is the company’s annual volume? Is the company in the process of growth or in a process where it continues to exist as a standard? These are very important questions.
  2. What is the culture of the company? The working principle of the company, the things they have determined as the basic principle in customer relations, what are the values ​​that are emphasized while managing employee relations within the company? All these questions reflect the culture and enable you to understand what values ​​you should talk about when selling a product or service to these companies.
  3. What industry is the company in? If you are working in the field of printing, you should present different promotions to a digital advertising company and hardware store, and introduce your service to them in different ways. Therefore, it is very important to define what type of industry the companies you are addressing are in.

Tiering Process

Each company has specific business goals, annual plans and a vision. It is very important to understand the extent to which the services you provide and the overall business goals of the company are compatible with each other. What do we mean?

For example, some companies may be promising long-lived companies that reach their goal almost every month. This will mean that this company will also take a long time to become your customer. Accordingly, it makes sense to allocate a higher portion of your marketing budget to companies with promising longevity potential.

Of course, that doesn’t mean you waste no time on your short-term customers. Allocate a certain marketing budget for all of your short-term customers. But if you do this by proportioning the estimated yield you will get, the ROI rate will also increase.

Understanding Needs

If you want to sell a certain product or service to a company, you must first understand the basic needs of that company and present yourself as a solution in line with these needs. What could be the way to do this?

First, determine what services you can provide. For example, if you provide advertising services, you should know the power that the target firm can achieve with new audiences. This power is a need of the company and you are the actor who can meet this need.

Needs are generally determined by asking the following questions:

  1. Is the company in question new to the market? Where exactly is this firm’s target audience and how is the firm doing its current marketing? In which subjects can the company achieve stronger results with the optimizations it will make?
  2. Asking these questions allows you to take a look at the business processes through the eyes of the firm, telling you what results they are willing to pay for what results.
  3. For example, a business you’ve worked for for a long time may be receiving orders over the phone or other traditional methods all the time. Your realization that this company needs to transform means that you identify a need for it. The firm can achieve strong results by transforming and adapting to the digital age. If you are a software developer and marketer, what you need to do is to make the company visible in the relevant market by doing mobile application, website and various SEO studies.


Finally, in order to understand a company and place it in a specific segment within your target audience, you also need to observe the behavior. How does the company you want to work with approach services similar to the ones you offer? At what points do you have difficulties with this service? What is the company’s perspective on innovative service options and transformation? The answers to all of these questions largely determine the language in which you will market to this company.


What are the 6 main types of market segmentation?

The most popular market segmentation strategies known and used can be listed as follows: demographic, geographic, psychographic, behavioral, needs-based, and transactional. Each method establishes a particular way of attributing certain characteristics to a firm by analyzing its target audience. Depending on the audience you are addressing and the industry you are in, it is possible to choose one or more of these types.

What are examples of market segmentation?

One of the popular examples of performing market segmentation is to evaluate your target audience in several different categories in terms of gender distribution or age range and to offer them different marketing processes by attributing features to them within these categories. For example, if your audience is 52 percent female and 48 percent male, you can produce different commercials targeting men and women.

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