Market Segmentation

Market Segmentation Market segmentation is the identification of portions of the market that are unlike from one another. Segmentation tout ensemble(a)ows the firm to better avenge the needs of its potential customers. The Need for Market Segmentation The merc heapise invention calls for understanding customers and satisfying their needs better than the competition. But various customers have different needs, and it rarely is possible to satisfy all customers by treating them alike. Mass marketing refers to treatment of the market as a homogenous group and offer the homogeneous marketing mix to all customers. Mass marketing allows economies of scale to be realized through aggregated production, mass dispersion, and mass communication. The drawback of mass marketing is that customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all customers. If firms ignored the differing customer needs, another firm likely would embark the market with a product that serves a specific group, and the officer firms would lose those customers. Target marketing on the other hand recognizes the diversity of customers and does not try to please all of them with the same offering. The first step in target marketing is to diagnose different market segments and their needs.

Requirements of Market Segments In addition to having different needs, for segments to be practical they should be evaluated against the following criteria: Identifiable: the differentiating attributes of the segments essential be measurable so that they can be identified. fond: the segments must be reachable through communication and distribution channels. Substantial: the segments should be sufficiently large to justify the resources involve to target them. Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes. Durable: the segments should be relatively stable to minimize the cost... If you want to get a full essay, order it on our website: Orderessay

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