Market segmentation, Marketing Management

Assignment Help:

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.


Related Discussions:- Market segmentation

What do you signify by communication process, Q. What do you signify by Com...

Q. What do you signify by Communication Process? Communication has been definite as a process in which exchange of ideas and information takes place among different persons. It

Mobile Wallet Payment value chain, How does the mobile wallet payment value...

How does the mobile wallet payment value chain look like? And where in the payment value chain can we place the mobile wallet service?

How a buyer can decides in making a purchase, How a buyer can decides in ma...

How a buyer can decides in making a purchase? A buyer has to take few decisions while making a purchase. For such decision there are several situations/transaction made through

Business process, marketing business process of automobiles company.

marketing business process of automobiles company.

Store merchandising, Store merchandising Store merchandising can be a c...

Store merchandising Store merchandising can be a complicated subject and various bulky books have been devoted to it. Simply, the term merchandising in the context of Store Mer

Political environment - marketing environment, Political Environment: ...

Political Environment: Economic environment is a by- product of the political environment, as economic and industrial policies followed by a nation very much depends on its

Briefly describe hofstede''s dimensions of national culture, Briefly descri...

Briefly describe Hofstede's dimensions of national culture. Geert Hofstede first researched the role of national culture within the organisation in a study of more thousand IBM

Describe the importance of television advertising, Question 1: The term...

Question 1: The term "Below the Line Media" refers to the non-commission paying advertising media like direct mail, sales literature, point of sale display material, exhibition

What is structural realignment, What is Structural realignment Marketi...

What is Structural realignment Marketing communications agencies are attempting to adjust the way they can best serve interests of their clients. One of the results is structu

Market crystallization, A market development stage is the one that refers ...

A market development stage is the one that refers to the attempt needed to recognize a latent market (i.e., organizations that share a like need or want for something that does no

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd