• Demographic segmentation: Demographic segmentation divides the market into groups based on such variables as age, marital status, gender, ethnic background, income, occupation, and education.
  Age, for example, will be of interest to marketers who develop products for children, retailers who cater to teenagers, colleges and universities that recruit students, and assisted-living facilities that promote services among the elderly. W Network targets female viewers, while TeleLatino Network (TLN) networks targets Spanish-speaking viewers. When Mazda Canada offers recent college and university graduates a $400 bonus toward leasing or buying a new Mazda, the company’s marketers are segmenting the market according to education level.
• Geographic segmentation: Geographic segmentation divides a market according to such variables as climate, region, and population density (urban, suburban, small-town, or rural)—is also quite common. Climate is crucial for many products: try selling snow shovels in Hawaii or above-ground pools in the Yukon. Consumer tastes also vary by region. That’s why McDonald’s caters to regional preferences, offering poutine at Canadian locations, whereas in the United States you can get a breakfast of Spam, sausage and rice in Hawaii, lobster rolls in New England and country ham, biscuits and gravy in the southern states. Outside of North America, menus diverge even more widely. You can get a McPaneer Royale in India, Mozzarella Dippers in the UK, a prawn burger in Singapore and gazpacho in Spain.
  Likewise, differences between urban and suburban life can influence product selection. For example, it’s a hassle to parallel park on crowded city streets. Thus, Toyota engineers have developed a product especially for city dwellers. The Japanese version of the Prius, Toyota’s hybrid gas-electric car, can automatically parallel park itself. Using computer software and a rear-mounted camera, the parking system measures the spot, turns the steering wheel, and swings the car into the space (making the driver—who just sits there—look like a master of parking skills). After its success in the Japanese market, the self-parking feature was brought to the United States.
• Behavioural segmentation: Dividing consumers by such variables as attitude toward the product, user status, or usage rate is called behavioural segmentation. Companies selling technology-based products might segment the market according to different levels of receptiveness to technology. They could rely on a segmentation scale developed by Forrester Research that divides consumers into two camps: technology optimists, who embrace new technology, and technology pessimists, who are indifferent, anxious, or downright hostile when it comes to technology.
  Some companies segment consumers according to user status, distinguishing among nonusers, potential users, first-time users, and regular users of a product. Depending on the product, they can then target specific groups, such as first-time users. Credit-card companies use this approach when they offer frequent flyer miles to potential customers in order to induce them to get their card. Once they start using it, they’ll probably be segmented according to usage. “Heavy users” who pay their bills on time will likely get increased credit lines.
• Psychographic segmentation: Psychographic segmentation classifies consumers on the basis of individual lifestyles as they’re reflected in people’s interests, activities, attitudes, and values. Do you live an active life and love the outdoors? If so, you may be a potential buyer of hiking or camping equipment or apparel. If you’re a risk taker, you might catch the attention of a gambling casino. The possibilities are limited only by the imagination.

While demographics are useful, advertisers often need to slice and dice even further. Traditional demographic segments (such as gender, age, and income) provide only a rough estimate of the attitudes and desires of different groups, so marketers often give consumer groups labels that capture something about their lifestyles and motivations as well.