Businesses cannot sell their products or services to the whole market. In addition, companies must face competition in their market. To be able to compete, companies segment products in their sector of activity. Each segment helps meet the needs of various target markets. For example, the product segmentation in the automotive sector would be: automobiles, trucks and vans.

The segment is a homogeneous group of consumers with similar needs, buying behaviors and expectations. The segmentation criteria must be relevant according to the consumer's purchasing process. It is important to choose the segmentation variables carefully. For example, the segmentation of the book sector would be: age, education, personal interest, income.

Understanding the customer base allows us to choose the right segmentation variables. Among the variable segmentation categories are the following:

  • Sociodemographic (age, gender, etc.)
  • Socio-economic (Income, education, etc.)
  • Geographic (Country, region, municipality, district, etc.)
  • Lifestyle (Values, opinions, interests, hobbies, etc.)
  • Behavioral (Needs, expectations, etc.)
  • Use (Habit, frequency of purchase, etc.)
  • Distribution channel (Retailer, wholesaler, Internet, etc.)
  • Volume and Profitability (Sales Volume and Profits)

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