Market segmentation
Lifestyle segmentation
Lifestyle segmentation groups consumers by how they live: what they do, what interests them and what they value. Rather than grouping people by age or income alone, a business looks at their activities, interests and opinions.
People with similar lifestyles often want similar products and respond to similar marketing. A business can target a group that shares a hobby, interest or way of living, then choose products, messages and places to advertise that suit that group.
Activities, interests and opinions
| Part of lifestyle | What it covers | Question a business might ask |
|---|---|---|
| Activities | Hobbies, sport, travel and how people spend free time | Do customers spend weekends hillwalking or gaming at home? |
| Interests | Subjects people follow and enjoy | Are they keen gardeners, cooks or football fans? |
| Opinions | Values and attitudes | Do they care most about low prices, sustainability or buying local? |
For example, imagine Plot and Pot, a small business selling seed kits and online growing guides. It notices that many customers grow vegetables on balconies and allotments. Their activity is regular gardening, their interest is growing their own food and their opinion is that home-grown food tastes better and uses less packaging. Plot and Pot targets this lifestyle segment with small-space seed kits, beginner guides and posts in gardening communities. A customer on the same income but with no interest in gardening is not in this segment, so the business does not waste money advertising to them.
Lifestyle segmentation is different from income segmentation: two people may earn the same amount but have very different hobbies and values. Not everyone in a lifestyle segment is identical either; they simply share enough activities, interests or opinions for one offer to appeal to them.
Practise this
Edexcel GCSE Business · 1.2.3 Market segmentation