Generally, Marketers always use Market Segmentation to make efforts of marketing more efficient in terms of costs, time and other resources. they divide the market into different subsets because of the different needs, wants, choice, characteristics and behavior of customer might require different products and marketing mixes.

Levels of Market Segmentation

1. Mass Marketing

Mass marketing refers to the strategy of targeting the entire potential customer market by means of a single marketing message.

The marketing strategy used in this segmentation does not target the specific requirements or needs of customers.

Mass marketing strategy, instead of focusing on a subset of customers, focuses on the entire market segment that can be a probable customer of a product.

In short, in this marketing everything is done on a mass scale; a product or service is produced, distributed and promoted to and for the masses. 

2. Segment Marketing

Segment marketing refers to a strategy where the company divides its target audience into different segments based on their unique needs and requirements.

This way the company targets different messages to different segments, appealing them towards the unique features the product offers.

This strategy creates product differentiation for customers with similar needs and preferences, based on their gender, age, income, and location.

3. Niche Marketing

This strategy of marketing uses when a product or service is tailored to a smaller or niche group. it focuses on narrower customer segmentation.

Customers may want or desire a product that is not met completely by the products offered in a market.

When companies move forward and develop highly specialized products to offer these customers their specific needs, they offer distinct products in a market that caters to specific customer segments only.

4. Micro Marketing

Micro marketing follows an even narrower segmentation marketing strategy, catering to the attribute of a much-defined subset of potential customers such as catering to individuals of a specific geographical location or a very specific lifestyle.

Just as a photographer zooms in on a subject, micro marketing takes a close-up picture of a niche market and then positions a product or service in a local market or even to certain individuals within that market.

5. Local Marketing

Local marketing focuses on brands and promotion to the needs and wants of local consumer and design marketing program according to the need of local consumer groups cities, neighborhoods and even specific stores.

6. Demographic Segmentation

This is one of the widest market segmentation, marketers divide customer population based on different variables in this segmentation.

For example, segmentation based on age, gender, income, religion, nationality, race, occupation, family size, etc is taken up by companies to target potential customers.

7. Psychographic Segmentation

This type of market segmentation targets the lifestyle, activities, interests, and opinions of potential customers. Psychographic segmentation considers the psychological aspect of how the potential customer responds to a product.

8. Behavioral Segmentation

In short, Behavioral segmentation refers to customer segmentation based on how they use, behave or make decisions related to a product.