Market Segmentation Matrix

Market Segmentation Matrix Template

Target the right consumers with the Market Segmentation Matrix template. Discover the best opportunities for growth.

About the Market Segmentation Matrix Template

Market segmentation helps you to better understand your market. This practice divides your target market into subsets based on demographics, geography, needs, interests, psychographics, and behavior. With this information on hand, it’s easier to leverage these divisions of your target market so you can build better product, sales, and marketing strategies.

Keep reading to learn more about market segmentation.

What is the market segmentation matrix?

The market segmentation matrix is an analytical business tool that allows your team to see how various segments have performed with a set of products. Market segmentation divides a market into different parts and helps your business offer the right products to the target market's customers.

The four market segments

The Market Segmentation Matrix template is divided into four quadrants, each of them representing one market segment: geographic, psychographic, behavioral, and demographic.

Because market segmentation analyzes consumers’ traits, behaviors, and overall characteristics, the template is an effective way to build demographic profiles of your customers. This template contains the most commonly-used segments, but you can easily add additional characteristics based on your needs and industry.

How to use the Market Segmentation Template

As mentioned previously, the Market Segmentation Matrix template is made up of four quadrants:

Quadrant 1: Geographic

Add any information regarding the location of your consumers. Zip codes, regions, and countries go into this quadrant. Think about economic zones and entire continents if you target a larger audience.

Quadrant 2: Psychographic

Add your consumer’s personality traits and interests. What are their emotions? What do they need? What are their beliefs?

Build a psychological profile of your consumer, identifying their lifestyles and preferences.

Quadrant 3: Behavioral

Like the psychographic quadrant, analyze how your consumers feel and behave with your product or service. Do they use your product? Are they loyal to your brand? How do they shop online? Map out any behavior they have when in contact with your business.

Quadrant 4: Demographic

Here, you can add demographic details such as age, occupation, education level, and gender identity. These characteristics should be quantifiable, allowing you to collect the primary data behind your consumers.

When creating or building your Market Segmentation template in Miro, invite your teammates to join the board and collaborate with you. Add ideas with sticky notes and upload photos, videos, or any other file type as needed. You may also want to color-code the sticky notes according to segment size or feasibility of pursuing a segmentation strategy with that particular group.

Benefits of using a market segmentation matrix

With the market segmentation matrix, it’s easier to market to customers and prospects. Because the barrier to entry is so low, it’s important to act with precision and avoid wasting resources.

Customers and prospects have high expectations for how, when, where, and why they buy and use products and services—and they have transferred those expectations onto marketing and advertising. These expectations are also constantly in flux, so your organization must stay aware of customer needs, behaviors, and desires.

Your market segmentation matrix lets you keep track of customer and prospect behavior, create marketing experiences that resonate, and boost your bottom line.

Without segmentation, you risk wasting resources by creating a marketing campaign that is too broad or targets the wrong population. By targeting the right people and double-checking to ensure that that population hasn’t shifted, your business will be better off in the long run and gain a competitive advantage.

When to use a market segmentation matrix

Your team should use a market segmentation matrix anytime you work on a new, existing, or planned marketing campaign. It allows you to track customer and prospect behavior and expectations easily, create more targeted marketing experiences, and improve your growth potential.

FAQ about the Market Segment template

How do you write a market segmentation plan?

First, set your ultimate marketing objective when creating your market segmentation plan. Are you trying to launch a new product or campaign? Better target your ads? Define your goals, and afterward, run user and market research to know your consumer’s characteristics and behaviors. Add this data to your Market Segmentation template and use this information to tailor your ads and target the right audience or build your product with the right consumer in mind.

How do you identify market segments and targets?

You can identify market segments and targets by conducting market and user research. Analyzing their behavior and patterns is a good starting point. If you need complementary information, some analytics tools are also helpful in identifying consumer profiles and how they interact with your product, service, or brand.

Market Segmentation Matrix Template

Get started with this template right now.

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