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When you’re creating a brand, such as a new product or service, it’s important to understand how customers will perceive your offering. In marketing, the process of understanding how customers think and react to products is called market segmentation. Market segmentation theory states that brands should appeal to different subgroups of customers so that at least one customer group finds value in the product or service being offered. This post will give you an overview of how market segmentation theory can apply to branding marketing.

Market Segmentation Theory

Market segmentation Theory is a way to divide a market into smaller groups of customers. Marketers can use this process to identify different types of customers, which helps them decide how best to reach those people and offer products or services that will be most appealing.

Segmentation can be based on demographics (age, gender), psychographics (interests, lifestyle), or geography (where the customer lives). It can also be based on behavior for example, if you like country music but hate rock music then you may buy country albums but not rock albums; this means that there are two types of customers: those who like country music and those who don’t. A marketer might want one type over another because they’re easier to sell to or harder to sell to! The goal is always to find groups with similar needs/wants so we know what kind of message should go out there.

Theoretical Background

Market segmentation is a way of dividing the market into smaller segments that have similar needs, wants, and preferences. This helps you identify new opportunities and understand your customers better. Market segmentation is used in many different industries to identify groups of people who share common characteristics and can be targeted with tailored marketing campaigns. A good example of this would be market research for mobile phones: people who own iPhones tend to be wealthier than those who own Blackberrys or Samsung phones because they are more expensive (and therefore require higher incomes).

Key Characteristics Of Market Segmentation

Market segmentation is the process of dividing a market into different subgroups of consumers with similar needs, wants, and preferences. It’s the first step in the marketing planning process because it helps you to understand your customers better.

  • Market segmentation helps you to identify those groups who are most likely to buy your product or service.
  • It helps you decide where to advertise your products or services so that they reach as many people from these segments as possible.
  • It gives you ideas about how much money should be spent on advertising each year (based on which segments have been identified).

Modern Concepts In Segmentation Research

Segmentation is the process of dividing a market into groups of customers who are similar in some way. This can be done based on demographic, geographic, and psychographic factors, or any combination thereof. Segmentation is a useful tool for marketers because it helps them to better understand their customers and serve them more effectively. For example, if you’re launching a new product aimed at young women aged 18-24 with an interest in fashion and social media platforms like Instagram or Snapchat then you might want to segment this group into those who live in urban areas versus those who live in rural locations, because they will have different needs when it comes to using your product (i.e., where they can buy it).

Limitations Of Market Segmentation Theory

Market segmentation theory is not a magic bullet. It can be useful, but it’s not a panacea that guarantees success. Marketers should be aware of the limitations of this approach:

  • Segmentation is not cheap. The time and effort required to identify segments, develop products for each segment, and test their appeal are substantial.
  • Segmentation does not guarantee success; some segments may be unprofitable or fail to generate enough profit to cover costs associated with developing products specifically for them.
  • Even if you find an attractive market segment, there’s no guarantee that customers will respond positively when they see your product you still have to convince them why they should buy from you instead of another company offering similar goods at lower prices or higher quality levels (or both).


Market segmentation theory is a great way to expand your business and find new customers. Segmentation is one of the most important concepts in marketing. It is used as a tool to better understand your customers and what they want, which helps you create better products and services for them. Segmentation can also help you identify new markets that might be interested in what you have to offer or even find out if there are any new segments out there that no one has thought of yet! We can help you with everything from creating a brand identity to developing effective marketing strategies that will increase sales.