Market segmentation

The market segmentation is seen within marketing as the key to the success of a successful marketing and deals with the division of markets into corresponding segments that can finally be worked on.

The process of market segmentation is divided into three areas: the market survey, the market subdivision and the final market processing with the different marketing instruments.

Definition / explanation

The aim of market segmentation is less to lead the company to the customer or vice versa. Rather, the segments should be subdivided according to factors that match as closely as possible in order to be able to estimate the processing effort more effectively. The market is therefore subdivided as part of an initial classification according to the criteria of the target group, the strategic and necessary business areas and sub-markets.

The segmentation, which has now taken place almost automatically, is weighted based on its degree of segmentation. A degree of “0” corresponds to mass marketing, since no distinction is made between the types of buyers and other criteria. A degree of “100”, also called automated segmentation, is the highest and most detailed segmentation and records every single customer in detail.

The criteria for segmentation are as diverse as they are diverse. Roughly, they can be in ...

  • demographic
  • psychographic
  • comparative criteria (behavior-oriented / observable buying behavior, segmentation according to profitability)
  • hybrid segmentation approaches

... subdivide. The latter use the different segmentation approaches in interaction, with additional weighting being carried out in many cases in order to optimize the result.

Special case of capital goods

The segmentation of capital goods differs fundamentally from the segmentation of consumer goods. On the one hand, significantly more secondary sources are available for the segmentation and, on the other hand, completely different criteria are used that more closely match the requirements of the capital goods. This includes, for example, the size of the company, the industry, the customer base and others.

Instruments and aids

The market segmentation increasingly uses statistical procedures and analysis methods to be able to achieve results. For this purpose, information is required that is often obtained from the Internet these days. Classic tools for obtaining and processing the data are here:

Goals of market segmentation

Of course, the first goal of market segmentation is an accurate diversification and classification of the existing markets. In addition to the expected increase in sales through the optimized use of resources, the market segmentation should also provide information and increase the company's flexibility.

Sales-intensive industries (e.g. insurance) cannot do without data mining of market segmentation and over the past few decades the development of the global Internet has made market segmentation one of the most important instruments in modern sales for capital and consumer goods.


  • is the division of markets into corresponding segments
  • The process is divided into three areas: market acquisition, market subdivision and market cultivation
  • The aim of market segmentation is to make processing more effective
  • Criteria for segmentation are very diverse and different
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