Market segmentation: at a glance
In any business organization, marketing is an important operating platform. It is on the basis of marketing that a business enterprise flourishes reaching the heights of glory. Marketing involves an aggressive effort on the part of expert marketers to promote the product. A branded product is sold on the basis of its brand name and often does not require a push to create a niche in the market. However, there are certain steps that need to be taken to create a market segmentation for the products that need to be promoted successfully.
Market segmentation is considered one of the main elements to market products successfully, as it facilitates product positioning, targets a specific market and simplifies the entire planning process for product marketing. Indeed, market segmentation encompasses the segregation of customers or even potential customers in a market comprising a variety of groups where customers frequently share a common interest and have the same requirements which can also be considered as a technique targeting a group. specific. Of customers
Market segmentation goes into the details of specific customer requirements and where there is a diversity of requirements, they are segregated into groups. Market segmentation in its actual form is necessary to meet certain criteria, such as one segment being different from another segment and another segment having similar requirements. Market segmentation paves the way for freezing product specifications, price, promotional and distribution tactics, as well as helping in overall product planning and organizing management operation profitably. One of the preliminary requirements is a thorough understanding of the precise requirements of the customer. Market segmentation is often considered an effective tool for allocating resources and defining specific markets.
Market segmentation is usually segregated by area or location, which is known as geographic segmentation; where it is based on gender, income, age, and various other determining factors, it is known as demographic segmentation. Psychological segmentation is done on the basis of likes, preferences, likes, dislikes, and lifestyles, where behavioral segmentation depends on responsiveness, loyalty, and place history.
It is imperative that before determining its own niche in the market, a business organization needs to conduct an analysis on the various requirements of the market segments, their strengths and weaknesses, competitive threats, external opportunities along with other factors such as marketing strategy. competitors, economic environment, eco-social factors and political and legal factors.
Market segmentation is actually considered as an effective tool that refers to buyers in a variety of segments that have common requirements that would respond similarly to a specific marketing effort and is a recognizable group of individuals, families, and companies that share requirements. Similar. Market segmentation usually responds in advance to a marketing or promotional offer.
a) Helps to better understand the needs and wants of customers. b) Better orientation and positioning of the product. c) Foster two-way communication between the potential buyer and the organization. d) Maintain effective relationships with customers. e) Retain existing customers and attract new ones. f) Improve service delivery standards. g) Reduce costs/expenses in various marketing activities and increase market share; resulting in higher profits.