Segment marketing is the practice of defining your customers needs and wants by placing them in specialized groups that receive different attention and different levels of marketing.  The way customers are segmented by a company can vary from business to business but generally include areas such as income, regional location, sex, socioeconomic factors, and previous buying or business associations. Once the groups are designed, the object of segment marketing becomes unified; to offer customers marketing strategies and offers that are designed with their group characteristics in mind to produce profitable results for the company.

The concept behind segment marketing is that if you can identify the needs of your consumers by groups then you can direct your marketing efforts to make a larger impact. For example, in the Southern regions of the country hunting is a part of culture, while in the northern sector it is more of a sporting event without any end goal. Thus, following the principle of segment marketing a hunting rifle association may target viewers in the northern regions with more fancy gear that is more impressive to own and target those in the southern regions with more practical rifles. The end result would be higher sales in both regions.

Segment marketing is aimed at addressing consumers needs without forcing them to look for items that they desire. When you place the appropriate service or project dressed in a marketing effort they appreciate and with a price tag that meets their expectations you can watch your marketing sales profits skyrocket, but it is not an overnight process. In order to see segment marketing work oftentimes a company needs to rework itself from the management level up and invest in either consultation agencies or a consumer research team. The profits from segment marketing are dependent on how invested and thorough the business is when dividing its market.

Online, segment marketing can also be used and seen frequently. For example, international companies like Nike and Coca-Cola often divide their website entrances by country. Thus, they are able to divert customers into the area of their website that is designed to meet their needs in particular as product availability differs internationally. While your company may not be that large, you can take care to segment your website on a smaller scale. Divide your consumer base to target email advertisements and optimize marketing efforts at different segments of your clientèle based on their preferences and buying habits.