The Three Main Approaches to Segmentation - B2B International USA (2024)

FAQs

The Three Main Approaches to Segmentation - B2B International USA? ›

Segmentation can be approached in three main ways: firmographic, behavioural and needs-based. Firmographic segmentation is by far the simplest, grouping customers by aspects such as age, gender, company size, industry vertical, income and location.

For B2B organizations, there are five methods for segmenting a TAM: firmographics, technographics, intent, personas, and journey stage. Some of your marketing and sales campaigns may use a combination of these approaches for optimal results; for others, just one may suffice.

The following is a list of common market segmentation approaches: Geographic: nations, states, regions, cities, neighborhoods, zip codes, etc. Demographic: age, gender, family size, income, occupation, education, religion, ethnicity, and nationality. Psychographic: lifestyle, personality, attitudes, and social class.

Generally, there are three approaches to segmentation in international marketing: macro-segmentation, micro-segmentation and the hybrid approach. Macro-segmentation: Macro-segmentation or country-based segmentation identifies clusters of countries that demand similar products.

Segmentation can be approached in three main ways: firmographic, behavioural and needs-based. Firmographic segmentation is by far the simplest, grouping customers by aspects such as age, gender, company size, industry vertical, income and location.

The most common types of target markets are based on geographic location, psychographic and behavioral characteristics, and demographic data like age, gender and income.

According to the literature there are three approaches in international market selection, a systematic approach, a non-systematic approach and a relationship approach (Andersen & Buvik, 2002).

The different types of market segmentation

The three main types of market segmentation are demographic, psychographic, and behavioral. Demographic segmentation divides people based on their age, income, education level, and occupation.

Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types. Here are several more methods you may want to look into.

What are the three common segmentation strategies? ›

Markets can be segmented in several ways such as geographically, demographically, or behaviorally.

The three-step funnel consists of market segmentation, market targeting, and product positioning. Within your research-based market segmentation phase, you are aiming to identify a basis for the segmentation of your target customers, and determine important characteristics to differentiate each market segment.

Segmentation variables refer to the factors marketers use to categorize their audience into different groups. The 4 main types of segmentation variables include demographic, geographic, psychographic, and behavioral traits.

There are many ways to segment markets to find the right target audience. Five ways to segment markets include demographic, psychographic, behavioural, geographic and firmographic segmentation.

B2B market segmentation focuses on finding unique audience segments by revealing common characteristics. Businesses can better connect with potential customers by understanding similar traits, needs, and behaviors. It allows you to prioritize resources, tailor messaging, develop products, and amend sales processes.