What is target market segment strategy?
James Williams
Updated on February 19, 2026
A market segmentation strategy organizes your customer or business base along demographic, geographic, behavioral, or psychographic lines—or a combination of them. Market segmentation is an organizational strategy used to break down a target market audience into smaller, more manageable groups.
What is market segmentation strategy?
Market segmentation is the research that determines how your organisation divides its customers or cohort into smaller groups based on characteristics such as, age, income, personality traits or behaviour. These segments can later be used to optimise products and advertising to different customers.
How do you develop a market segmentation strategy?
Steps in Market Segmentation
- Identify the target market. The first and foremost step is to identify the target market.
- Identify expectations of Target Audience.
- Create Subgroups.
- Review the needs of the target audience.
- Name your market Segment.
- Marketing Strategies.
- Review the behavior.
- Size of the Target Market.
What are the elements of target market?
These include gender, age, income levels, race, education, religion, marital status, and geographic location. Consumers that fall into these groups tend to value the same products and services, which is why narrowing down these segments is one of the most important factors to determine target markets.
What are market segments examples?
For example, common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral.
What are the examples of market targeting strategies techniques?
Using the Marketing Mix to Reach Target Segments
| Strategy | Target Market | Example |
|---|---|---|
| Differentiated marketing | Large groups within the total market | Costco, Sam’s Club |
| Niche marketing | High penetration within smaller, specialized segments | Trader Joe’s, Whole Foods |
| Micromarketing | Individual customers or localized microsegments | Groupon |
What is a target market give an example?
For example, a children’s toy may have boys ages 9–11 as the target market and the boys’ parents as the target audience. It may also be defined as the consumer segment most likely to be influenced by an advertising campaign. The target market is also distinct from the buyer persona.
