What is Market Segmentation?

The idea of marketing is to reach out to your target audience with an intent to sell to them. Your marketing efforts are done by analysing your target market and writing messages that appeal to them directly, informing them how your product or service is perfect for their needs.

That might be easy if you sell just one product, or have one target market. If you are marketing a children's book, you know your target market are children. That is not going to change, and there are no variants. However, if you are large organisation, you are likely to have many different types of a target audience.

For example, a company like Nissan produces lots of different types of cars. The GTR appeals to the high-earning performance loving customers, whilst the Qashqai appeals to families or those who need a lot of boot space. This is prime example of why a singular marketing message would not work.

Organisations like this divide their target market into segments, and then develop marketing communications for each segment. They choose new content, alter their tone, change whether their adverts are more informational or emotional.

This has more targeted appealing messages to each of your market segments. It's a marketing no-brainer.

Rules to Market Segmentation

If you want to split your audience up, there are a few essential rules if you want your marketing efforts to be successful. Segments must be:

  • Measurable
  • Accessible
  • Substantial
  • Differentiable
  • Actionable

Undifferentiated Market Segmentation

Undifferentiated marketing is what we call mass marketing. Whilst market segmentation is a great tool, it is not always possible Perhaps you sell flowers in your local area. You know who your target market is. They are small but are all after the same thing. The occasion might change - once a year it's mother's day, February has Valentine's, but there is no change to your customer base.

You might also not have a large enough market to start dividing up. One of the rules is to have segments that are differentiable. It's not worth doing it for the eighty customers you have. You'll be increasing the workload for yourselves.

An example of a company of that might adopt undifferentiated marketing is a store like Tesco or ASDA.

If you are planning to get promotional products for a undifferentiated marketing campaign, it's important to pick something that can appeal to as many people as possible - something like our sports bottles or anything from our sports gear or fan zone sections.

Differentiated Market Segmentation

Differentiated marketing is the next stage of segmentation. This is when you split your market up into large manageable segments. Brands like Nissan use differentiated marketing, having different adverts for different cars, trying to convey different messages for each car depending on who's more likely to buy the car. However, they do supply cars to all types of people, which is what makes it different from concentrated marketing.

If you are looking for promotional sports products for a differentiated marketing audience, don't be afraid to pick a sport. You have a larger idea of who your audience are. You still want to pick a popular item, but you can use the analysis of your segment to find out what they might like. Choose something promotional rugby balls or a branded football.

Concentrated Market Segmentation

This is niche marketing. It is slightly different from the last concept we discussed as although you might divide up the market into segments, you are only reaching out to one. For example, you might be a premium brand like Rolex who only want to supply to a certain segment of the market.

Have a look at the general market. Is there only a small part of the market that you are trying to reach out to? Create a marketing strategy to appeal to that segment only - there would be no point with Rolex trying to screen a TV advert, as most people watching would not be their ideal audience.

In regards to promotional products, you will need to know your audience really quite well. If you're a premium brand for instance, then your market are not going to like non-premium promo products. The vintage football is the answer.

If you think it's not important, then you really should read this blog item: How Giving Out the Wrong Promo Gifts Can Ruin Your Sale, and Your Brand.


Micromarketing is something that a lot of people might have heard about, but not know what it is. This is the most segmented you can be with your marketing. This notion is when you customise your marketing for each client. If you have a lot of customers like Tesco, then you cannot possibly market to each person individually. It would be an impossible task. However, if you only have about five major clients that support your business, then customise each message to them.

This is when promotional products might not be necessary. What? A promotional product supplier saying it's not worth it? Well we want to provide valuable, genuine information. Now it might be different if they are all golf fans; promotional golf balls might be a good idea. If they are all individually different, it's not worth it.

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