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What are some common variables used in Segmentation?

Home » Advertising & Marketing » Market Segmentation and Targeting » What are some common variables used in Segmentation?
Posted by Your Guide on October 31, 2005 3:31 PM

Almost universal in segmentation selection are geographic and demographic factors. These two factors are found in both consumer and business markets.


  • Demographics: In the case of consumer markets, demographics might include age of the individual, sex, marital status, family size (if applicable), life stage, their birth era (are they baby boomers, Gen X, Gen Y), residence tenure and ownership (how long at current residence, do they rent/own), etc. While it may seem like a lot of information, it is only the tip of the iceberg for what many consumer-driven companies keep in their databases. For business-to-business markets, demographics might include type of business (are they a manufacturer, retailer, wholesaler), SIC code (indicates type of business), industry (such as plastics or semiconductor manufacturer), company size (in terms of number of employees, sales volume or net billings, number of retail outlets) and company business life cycle (is the company a new start up, in the growth stage, established growth, or mature).
  • Geography: For consumer markets, this includes household location (whether national, regional or state), setting (urban, suburban, rural), international (if selling across borders) and climate (is it tropical, tundra, or four season). For businesses, many of the same types of information may be stored.

Other segmentation variables might include:

  • Business metrics: Unique to business markets, this asks, What type of ownership is it (a sole proprietorship, partnership or corporation)? Is the company privately owned or publicly traded, a franchise chain or independently owned and operated?
  • Financial condition: Does the company have a good credit rating? How is their cash flow? Do they have a history of net earnings or losses? What is their stock price? Are they meeting analysts’ expectations?
  • Invoice history: What have customers been purchasing? When was their last purchase? How often do they purchase? What is the sum of their monetary transactions?



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