The different levels of market segmentation

market segmentation

To help a company develop more specific marketing plans each market is divided into segments. Each level of a market segment requires different information and a different marketing approach. You need to understand what the levels of market segmentation are, how to approach them and how they work together to develop comprehensive marketing plans.

market segmentation


A global market segment is the portion of the population. That fits a general demographic profile of your target audience. This is an all-encompassing level of segmentation that contains general information about the specific characteristics of your audience. This is such as age, median income, geographic disposition, and purchasing patterns. The global market segment is not compartmentalized or broken down in any way. It is analyzed as a group with its generalized behaviors to adjust a marketing profile.


Within the global market segment, there are a number of niches. A niche is a group of consumers who have product preferences that are grouped together. For example, if you sell sports cars, then you can find that your overall target market is men in the ages of 18 to 55. However, within that global segment, you have niches of consumers who prefer red cars, cars with leather seats and cars with racing stripes.


When you go deeper into the levels of a market segment, you start looking for where your niches are. These localized market segments are used to determine where to do specific marketing classes and where product needs may be larger. For example, if you find that most of the consumers in the red sports car niche mentioned above are in the southern United States. Then your posters and magazine ads will feature red sports cars and will try to store as many red sports cars in that geographical region as possible.


The last level of market segmentation deals with the consumption habits of individual people. This level mainly concerns the collection of data from individuals. So that you can put them in niches and have data to better, understand the overall composition of your global segment. Sales staff and customer service representatives keep in touch with customers individually to help maintain brand loyalty and preserve repeat business.