The criteria for segmentation may differ from one company to another. One of the most convenient methods is geographic segmentation.

A more sophisticated yet still simple criterion for segmentation is demographic (and in the case of B2B markets, firmographics).

A more useful approach is categorizing consumers on the basis of how they purchase and use a particular product or brand.

The most useful approach in segmenting consumers is on the basis of psychographic information.

An ideal segmentation approach combines different strategies (including demographics and psychographics) to arrive at groups with the highest level of differentiation.