1. A priori segmentation, the simplest approach, uses a classification scheme based on publicly available characteristics — such as industry and company size — to create distinct groups of customers within a market. However, a priori market segmentation may not always be valid, since companies in the same industry and of the same size may have very different needs.
2. Needs-based segmentation is based on differentiated, validated drivers (needs) that customers express for a specific product or service being offered. The needs are discovered and verified through primary market research, and segments are demarcated based on those different needs rather than characteristics such as industry or company size.
3. Value-based segmentation differentiates customers by their economic value, grouping customers with the same value level into individual segments that can be distinctly targeted.

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