Segmentation on the basis of target groups aimed at, advertising can be classified as –

1. Consumer Advertising,
2. Industrial Advertising,
3. Trade Advertising,
4. Professional Advertising.

Consumer advertising: A very substantial portion of total advertising is directed towards the consumers who purchase them either for their own use or for their household. The main point to be remembered here is that buyers of consumer items are generally very large and are widely distributed over a large geographical area, which enhances the importance of advertising as a marketing tool. Looking into at random any general print media, such as newspapers, magazines etc, can see such advertising. These advertisements are intended to promote sale of the advertised products appealing directly to the buyers/consumers. Such advertising is called consumer advertising.

Industrial Advertising: Industrial advertising on the other hand refers to those advertisements, which are issued by the manufacturers/distributors to the buyers of industrial products. This category would include machinery and equipment, industrial intermediates, parts and components, etc. Because of the unique characteristics of industrial buying decision process, the importance of industrial advertising is comparatively lower than that of consumer advertising.

Trade Advertising: Advertisements, which are directed by the manufacturers to its distribution channel members, such as wholesalers or retailers, are called trade advertising. The objective of such advertising is to promote sales by motivating the distribution channel members to stock or to attract new retail outlets.

Professional Advertising: There are certain products for which the consumers themselves are not responsible for the buying choice. The classic examples are pharmaceuticals where doctors make decision while the consumers are the patients. Almost similar situation exist in the field of construction where architects, civil engineers and contractors are the decision makers. Firms operating in such market segments, therefore, have to direct their advertising to these decision makers, who are professional people. Such advertising is called professional advertising.

With increasing competition, players try out to carve separate niche, which leads to greater segmentation of the market. As each brand needs significant investment for launch as well to sustain equities, the plethora of brands become unmanageable. The process of restructuring and cost engineering results in consolidation and phasing out of weaker brands and thereby reducing the market segmentation.

Segmentation as a tool is effective in understanding the consumer and the market associated with your brand. Only a proper understanding of it will give you an understanding as to how to make your advertising campaign.