Market segmentation refers to a marketing strategy where a business divides its market and prospective buyers into subgroups or segments using common characteristics, preferences and needs. Through market segmentation, the brand can then tailor their products to fit the criteria that appeal to consumers.

There are 4 types of Market Segmentation:

-Geographic Segmentation: is done by grouping consumers based on their geographical regions. With this, consumers are divided in smaller groups according to where they live and work using certain pieces of information such as: country, city, postal code, climate, population, and time zone.

-Demographic Segmentation: is done by splitting consumers into group based on elements such as: race, ethnicity, gender, age, nationality, religion, job, income, education level, marital status, and family size.

-Psychographic Segmentation: is done by grouping consumers according to certain psychological aspects such as personal values, personalities, interests, hobbies, opinions, goals, beliefs, and attitudes.

-Behavioural Segmentation: is done by dividing consumers into groups based on common behaviours and patterns such as: purchasing habits, spending habits, brand loyalty, brand interaction, and benefits sought.