Q.  Explain market segmentation?  Tell need to segment the markets?

OR

Clarify the term market segmentation & briefly explain the need to segment the market?

Ans.:  Markets are not homogenous and they are made of various segments. A market is the aggregate of consumers of a given product & consumers vary in their characteristics parching behavior. It is possible to disaggregate the consumers into segments in such that in require characteristics and buying behavior; the members vary considerably among segments.

Segmentation profit the marketer as:-

• Facilitates  Taping  of  the  Market,  Adopting  the  Offer  to  the  Target: Segmentation also enables the  marketer to crystallize the requirements of the target buyers. Also it helps him to produce an right predication of the likely responses from each segment of the target buyers.
• Facilitates Proper Choice of Target Market:  Segmentation helps in distinguishing one customer group from another and there by unable him to choose which segment should form his target market.
• Makes the Marketing Effort More Efficient & Economic: Segmentation makes the marketing try more efficient and economic. It ensures that the marketing attempt is concentrated on well defined & carefully select segments. After all, the resources of any company are restricted & no company can normally afford to attack and tap the whole market.

For example: Ford Strategy - Through segmentation car manufacturers have achieved useful  insights  on  the  product  features  to  be  provided  to  different segments of car buyers.

Advantage the customer as well.

•   Helps  spots  the  less  satisfied  segments  and  succeed  by  satisfying  such  type of segments.
•   Helps   gain   the   specialization   required   in   product,    promotion, distribution & costing for matching the customer group & develop marketing offers.

Then, to compete more effectively, various companies go for target marketing which can establish and communicate the distinctive advantage of the company's market offering. This procedure is called as market segmentation.

For example.: GM has recognized 40 different customer requirement & 40 different market segments in which it would be present with its vehicle.

Posted Date: 10/15/2012 4:03:07 AM | Location : United States

Ask an Expert

Related Discussions:- Market segmentation, Assignment Help, Ask Question on Market segmentation, Get Answer, Expert's Help, Market segmentation Discussions

Write discussion on Market segmentation
Your posts are moderated

Write your message here..

Related Questions

Difference between business and systems integration, 1. Offer an example, r... 1. Offer an example, real or imaginary, of firms in each of the following three situations (do not use the Wiztech case as the basis of your response). Thoroughly explain your exam

Pricing, what are the factor that should be considered while setting pricin... what are the factor that should be considered while setting pricing policyn..

Case study, #Should video game companies continue to alter their products t... #Should video game companies continue to alter their products to include other functions such as email? Shouldvideo_game_companies_continue_to_alter_their_products_to_include_othe

New products development process, New products development process: Id... New products development process: Idea generation: the development of the new product starts with a generation of new ideas. There may be a number of sources of the ideas gen

Name the main marketing communication disciplines or tools, Name the main m... Name the main marketing communication disciplines or tools There are five main marketing communication disciplines or tools: advertising, sales promotion, personal selling (see

What is probe what went wrong, What is probe what went wrong? Probe ’w... What is probe what went wrong? Probe ’what went wrong: It happens while the product is having several special problems. In that case marketing department takes essential s

Shopeersstop, what are significant factors that have led to the success of ... what are significant factors that have led to the success of shoppers'''' sto

Market targeting strategies, Targeting strategies:  having segmented the ma... Targeting strategies:  having segmented the market, the firm now has to choose its marketing strategies. There are three strategies to choose from: 1.       Standardization: i

Define the market intelligent enterprise, Question 1: Leading edge comp... Question 1: Leading edge companies are driving to increase profits from high yield customers. They aim to acquire and retain profitable customers and get them to spend more. Th

Analysis the kinds of synergies product, The road to market leadership has ... The road to market leadership has not been without potholes however. In 1998, the company attempted to extend its brand by entering the herbal supplements market, rolling out a lin