What Is Segmentation and Marketing Strategy
Segmentation
Segmentation may be defined as the process of dividing a heterogeneous market into homogeneous sub-units.
To get a product or service to the right person or company, a marketer would firstly segment the market, then target a single segment or series of segments, and finally position within the segment(s).
Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment '.
Importance of segmentation
The essence of the marketing concept is the idea of placing customer needs at the centre of the organization’s decision-making. The need to adopt this approach stems from a number of factors, including increased competition, better-informed and well-educated customers and, perhaps most importantly, changing patterns of demand. Primarily it is the change in patterns of demand that has given rise to the need to segment markets.
Market segmentation is one of the central pillars of modern marketing and is found at the very core of the marketing process. Some writers suggest that segmentation is the most important activity within modern marketing. This claim is debatable but what is true is that the general principles and processes of market segmentation are absolutely vital to effective marketing strategies for the vast majority of firms operating in today’s highly competitive economy.
This change in patterns of demand stems from the fact that higher standards of living and a trend towards individualism has meant that consumers are now more able to exercise their choice in the market place.
Market segmentation can be defined as the process of breaking down the total market for a product or service into distinct sub-groups or segments where each segment may conceivably represent a separate target market to be reached with a
Segmentation may be defined as the process of dividing a heterogeneous market into homogeneous sub-units.
To get a product or service to the right person or company, a marketer would firstly segment the market, then target a single segment or series of segments, and finally position within the segment(s).
Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment '.
Importance of segmentation
The essence of the marketing concept is the idea of placing customer needs at the centre of the organization’s decision-making. The need to adopt this approach stems from a number of factors, including increased competition, better-informed and well-educated customers and, perhaps most importantly, changing patterns of demand. Primarily it is the change in patterns of demand that has given rise to the need to segment markets.
Market segmentation is one of the central pillars of modern marketing and is found at the very core of the marketing process. Some writers suggest that segmentation is the most important activity within modern marketing. This claim is debatable but what is true is that the general principles and processes of market segmentation are absolutely vital to effective marketing strategies for the vast majority of firms operating in today’s highly competitive economy.
This change in patterns of demand stems from the fact that higher standards of living and a trend towards individualism has meant that consumers are now more able to exercise their choice in the market place.
Market segmentation can be defined as the process of breaking down the total market for a product or service into distinct sub-groups or segments where each segment may conceivably represent a separate target market to be reached with a