Market segmentation is the process that many organizations use in order to analyze their audience or service group. By dividing their audience into subgroups which have special needs, wants, or behaviours, you increase the ease of communicating, providing services or selling to them.
Marketers use four main methods to segment (or divide) an audience. These are demographic, geographic, psychographic and behaviouristic segmentation:
For example, a market segmentation analysis of Dwayne "The Rock" Johnson would look like:

Read on the learn more about finding information for market segmentation and the best resources to use.
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You can segment a market by the following key demographic groups:
Usually these demographic groups are located within a specific area, so demographic and geographic segmentation usually go hand-in-hand (e.g., comparing numbers of seniors in Toronto to seniors in Calgary).
Behaviouralistic segmentation is primarily activity based. It includes hobbies, sports and fitness involvement, purchasing behaviour, entertainment, social events, dining patterns -- any behaviour that can be measured and quantified.
Sometimes psychographic and behaviouralistic/lifestyle variables are bundled together as IAO variables (Interests, Activities and Opinions). There can be overlap between the two areas.
For example, a person who has a more conservative mindset (psychographic) will tend to vote for conservative candidates (behaviouralistic/lifestyle). Basically, what you think can influence what you do.
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