Hello, why market segmentation is important. However, no market is completely homogeneous. And to create this meaningful segment, it is up to marketers to understand the different buying combinations that can meet the requirement. Because in 1980, we all looked for customers in each person, but today we look for individuals in each customer.
Because an organization benefits from the process of segmentation in many ways. Whereby even buyers need segmentation to generate New Product ideas and provide something and this insight for Advertising. And while Mercedes produces the same cars worldwide,
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What is Seven Reasons for Market Segmentation?
This advertises cars not as “quality” cars in Germany, but as “prestige” cars in India. Therefore, we have the ability to play a very big role in market segmentation. So let’s have a look at that seven segmentation which is present below.
This segmentation is necessary to measure market share, specification of target customers, growth, identification of relevant competitors, to formulate marketing objectives and strategies.
2. Focus Marketing Communication:
This segmentation establishes commitment and one-mindedness with the organization. Then a vision, a voice, and a harmonious message. The division that allows an organization to identify capable media channels to reach the target group. Young women who are interested in fashion are more likely to read ‘Famine’. So in this way, marketers can choose this medium instead of going for mass media.
3. Take care of the dynamic environment:
This customer segment, which is prone to frequent changes due to the changing environment, and can be taken into account in strategic marketing planning. As a matter of fact, large companies with resources in command are leaving mass marketing.
4. Competitive Analysis:
For us to compete better in the market, and also the competitors, which must be fully aware of the segments they work in and the way they work. So that enables us to know that segment. In which our organization can serve better. Or if such information is ignored. So, we may find ourselves in a situation of confrontation with big rivals, or we may meet.
And in particular, medium-sized firms can grow rapidly through strong positions in particular market sectors. Therefore, by delightful segmenting and targeting, companies can set both stages to serve customers well and minimize the impact of competition. So thus, the division is a source of competitive advantage. And raises awareness of external market trends and competition.
5. Better resource allocation:
This is because segmentation aims to serve customers better, and earn more profits when the firm wants to allocate resources more efficiently. The refutation then shows who not to target. And which customer groups would be the best recipients of resources. Which, thus, market segmentation will lead to better marketing.
6. Marketing mix the right way:
This is because market segmentation helps define shopping habits, such as: (when, how much, and how often), price sensitivity, and required profit. Which is such support? That it helps make the marketing mix more accurate.
7. Better Customer Relationship:
This segmentation will enable the buyer to find the products best suited to their physical or psychological needs. Which will be more loyal to the firm (s) for customers to find products to suit their needs. Since segmentation helps meet customer needs, expectations, aspirations, and wallet share, this market segmentation is customer-oriented.
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Business management expert and Leadership Consultant and Business Coach, who writes her blog, Jay’s Trends, focused on helping small business owners understand trends in Business management. Other posts by Jayprakash Prajapati»