Homogeneity is important within segments because the target group should fit a specific profile. Customers with similar characteristics will also exhibit similar purchasing habits. However heterogeneity is equally important in segmenting because segments should be distinctive from each other and should have their own identity. When segmenting, several bases need to be considered to provide a complete customer profile. One way of classifying segmentation dimensions is in looking at physical versus behavior characteristics.
Physical traits used in segmentation include geography, demography and socioeconomic factors.
Commonly used behavioral traits are psychographics, product usage, benefits, media exposure, marketing mix factors and marketing mix factors. Although these tend to be the most common, other ways are possible. The people conducting the analysis have two sources to use while conducting research, either primary or secondary data. Using secondary data saves the analyst a lot of time and money in conducting research, so it should be used whenever possible. By using a sampling approach, data can be projected to provide a realistic profile of a market at the lowest cost possible.