Market segmentation helps to send the right marketing message efficiently. In order to understand the correct meaning of market division, we must differentiate between it and the terms study and analysis of the market

  • Market study: This means the process of collecting information about the target market, such as its size and needs, and identifying the opportunities available to it.
  • Market analysis: This comes after the study, in which the information collected is evaluated to provide a clear view of the market
  • Market division: This comes finally after study and analysis, in which we divide the market into smaller segments with similar characteristics

What is meant by market segmentation?

Market segmentation is a marketing tool aimed at dividing a target market into smaller subgroups characterized by common characteristics.

What is the importance of market segmentation?

The importance of market segmentation lies in several points:

  • Increased profits Companies that follow market segmentation strategies achieved 10% higher profits than others.
  • Creating digital ads targeting specific ages, interests, and locations as a result of understanding and identifying market characteristics.
  • Develop strategies that are more effective and more responsive to the target audience.
  • Market segmentation achieves better audience response rates and lower acquisition costs.
  • Clear, targeted messages help attract the right customers to you.
  • Keep your marketing strategies on track.
  • Continuous development of services and products according to different customer needs.
  • Developing the brand by identifying specialized markets and improving service to current markets

How can the market be segmented?

The market can be divided and segmented through several basic steps:

1.General study of the market

It is necessary to conduct a general and comprehensive study of the market to understand the factors influencing consumer behavior, whether cultural, economic, or other.

2. Good data analysis

All data related to the market and customers must be carefully collected, analyzed and understood, to understand the needs and trends of the target audience.

3. Identify the main variables

After studying, deeply understanding and analyzing the data, we can determine the main variables, such as age, gender, interests, etc., on the basis of which the market will be evaluated.

4. Market segmentation

Divide the market into small segments, and study and understand the characteristics of each segment.

5. Separate analysis of target groups

After dividing the market into smaller categories, we must study and analyze each category separately to determine its needs, interests, and purchasing patterns.

6. Develop marketing strategies

Developing marketing strategies to suit the target groups through advertising messages through various marketing channels appropriate to them.

7. Implementation and follow-up

Finally, the selected strategies are implemented, their success is followed up, and their strengths and weaknesses are identified for development.

What are the foundations of market segmentation?

  • Measurability: Market segments must be measurable.
  • Accessibility: Market segments must be accessible.
  • Workability: Market segments must be workable.
  • Differentiation: Market segments must be differentiated from each other.

What are the types of market segmentation?

There are basic types of market segmentation:

1.Demographic segmentation

That is, market segmentation according to customer demographics, based on age, gender, gender, education, income...
Example: Discovering that most users of new electronic game consoles are young males with reasonable income.

2. Verographic segmentation

It is similar to demographic segmentation but is specific to companies and institutions, in terms of number of employees and customers, resources and revenues.
Example: dealing with multinational companies with a variety of more specialized products, while dealing with small companies with more simple products.

3. Behavioral segmentation

It depends on the behavioral and purchasing patterns of consumers, based on their previous purchasing and spending patterns.
Example: Consumers from younger generations tend to buy handmade or popular products, while older generations tend to buy national and well-known brands.

4. Psychological division

One of the most difficult types, but the most powerful, as it is based on the consumers’ personal lifestyles, interests, and opinions.
Example: Sportswear companies target customers based on their interest in practicing or watching a type of sport.

How to define your market segment

Market segmentation takes place through several stages:

1.Setting goals

Determine the objective of market segmentation and forecasts for different segments.

2. Identify customer segments

Determine competitor sectors, available information, required data, and determine target sectors for division.

3. Potential evaluation of sectors

Evaluate the potential risks of choosing a sector, the validity of the data, and the different sectors related to the target customers.

4. Develop strategies

Testing different marketing strategies, measuring their success, strengths and weaknesses, and developing them.

5. Launching and monitoring

To identify the obstacles facing the implementation of the strategy, how to overcome them, and how to announce them.

The most important advantages and disadvantages of market segmentation

First: the advantages

  • Understand customer needs better.
  • Determine customer needs for products and services
  • Use marketing resources more efficiently.    
  • Increase Sales.

Second: defects

  • Market segmentation can be expensive.
  • It can be difficult to determine the correct segmentation criteria.
  • It may be difficult to reach some market segments.

What are the limits of market segmentation?

  • Market segmentation may increase costs.
  • Market segmentation may make it difficult to coordinate different marketing activities.
  • Market segmentation may make it difficult to reach some market segments.
  • Relying on the strength and credibility of data and changing trends.

Examples of market segmentation

Examples of market segmentation appear clearly and daily in marketing and advertising used by customers such as:

  • Car manufacturers' advertisements to attract specific sectors
  • Traditional brand advertising to attract older customers
  • Health product advertisements to attract customers interested in health and fitness
  • Build brand loyalty in younger potential customers by associating it with their games and movies.
  • Sports footwear companies target many sectors of athletes and gym-goers, men and women.

What is STP analysis?

It is to understand customer needs and build a successful marketing strategy and depends on three basic steps:


Segmenting the market into small groups of customers who are similar in their needs and desires.

2. Targeting

Choosing a group or groups of target customers towards whom marketers want to direct their marketing efforts

3. Positioning

Determine a distinctive position for the brand or product in the customer’s mind compared to the competition.

What is the concept of market targeting?

Identify the group most likely to win and achieve success, and who is best suited to a particular product or service. It aims to:

  • Improving the effectiveness of marketing campaigns.
  • Increase the chances of converting targeted customers into actual customers.
  • Use marketing resources more efficiently.

Market targeting strategies

  • Focused targeting: Focusing on a very small group of target customers who share the same needs or interests.
  • Differential targeting: targeting several categories of target customers, and developing different strategies for each category.
  • Global targeting: Targeting customers in all global markets, with minor modifications to the product or service to suit the needs of each market.

What is positioning in marketing?

The process in which a brand or product is positioned in the customer's mind in comparison to the competition.