Executing a market segmentation process can be the key to better business results. By analyzing who makes up a market, what factors influence these people and how they use a product or service, companies can better meet a market's needs. A marketing segmentation process helps organizations learn all about their markets so they can do just that.


Determine how to segment a particular market, and be sure the segments chosen are large enough to provide a solid customer base. Research by Ohio State University states that marketers often segment based on age, gender, location, family life cycle and demographics. Additionally, marketers might look at purchase frequency, average order value, brand loyalty and method of payment.


Look at existing customer data and determine if one segment is more likely than another to have a higher average order value or purchase more frequently. Use that information to focus marketing campaigns toward customer segments that drive the most revenue.

Make Decisions

Review all segmentation data and determine how that information can be used to secure more sales. According to the Harvard Business Review, companies can use segmentation information to drive new pricing, advertising and product packaging.


Market preferences will shift over time due to influences outside of your control. For instance, a new product may enter the market, your audience will age and the seasons will change. To ensure segmentation strategies continue to help secure new business, evaluate the segments often.