Segmentation

Category: Strategy

Grouping an audience by shared attributes so you can address each group differently.

Segmentation ranges from firmographic (industry, size, geography) to behavioral (product usage, purchase recency) to psychographic (values, motivations). The best segments meet three tests: distinct (behave differently from other segments), addressable (reachable through media), and material (large enough to matter). Over-segmenting is more common than under-.

Related terms

• Persona

Part of the AMA Orlando marketing glossary. See also the chapter's free marketing calculators and templates and playbooks.