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18 Examples of a Market Segment

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A market segment is a group of potential customers who have something in common that can be used to optimize marketing. Segments are used to tailor products, promotions, pricing, locations and customer experience to customers. The following are common examples of market segments.

Customer Needs

Customer needs are the most common type of market segment. For example, some customers need decaffeinated coffee and others need regular coffee. It is common offer different products, prices, locations and promotions based on needs.

Customer Preferences

Customer preferences such as perceptions of food ingredients. For example, a brand of salad dressing with all natural ingredients for customers who dislike ingredients that sound like chemicals or fillers.


Lifestyle segments such as furniture designed to maximize the space in a small urban apartment.


Targeting a culture, superculture or subculture. For example, a pub with sports memorabilia that targets local sports fans.


Customer type such as consumers versus businesses.


Demographics such as age, gender, education, nationality, religion and ethnicity. For example, an insurance product for seniors.


Income level such as a hotel designed for families on a budget.

Price Sensitivity

Beyond income, people have different price sensitivities relative to product categories. For example, consumers who are price insensitive when shopping for greeting cards and are willing to pay a premium for the right card.


Segmenting a market based on the risk they pose to you. For example, a flood insurance product with low rates for homes deemed to be at low risk.

Risk Perceptions

Segmenting a market based on their risk perceptions and tolerance. For example, a financial product for customers who want to protect their money from inflation without taking any market risk.


Segments based on geography such as a restaurant chain that customizes its menu to include local foods from each region and city.

Customer Loyalty

Products, prices and promotions that target your most loyal customers or perhaps your least loyal customers. For example, a fashion brand that releases limited addition items that are promoted to loyal customers.


Segments based on the enthusiasm of customers for a brand, technology or product category. For example, a toy train set designed for beginners versus a set designed for serious hobbyists.


Customers who are willing to immediately jump in and buy versus those that are a difficult sell. For example, promotional messages geared to early adopters of a new technology versus promotions for laggards.


Segments of the market who know a lot about your products versus those who don't. For example, a line of men's suits designed, priced and promoted to individuals who know suits.


Segments based on situations such as greeting cards for a particular holiday, occasion or life event.


Distribution channel based segments. For example, a fashion brand that views retail customers as a different segment than ecommerce customers.


Values such as customers who seek to minimize the environmental impact of their purchases.
Overview: Market Segment
A group of potential customers who have something in common that can be used to optimize marketing.
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