Market segmentation is a customer oriented philosophy. we first identify customer needs in submarket. then we design a product and or a marketing programme to reach that sub-market (segment) and satisfy those needs. stated another way in market segmentation we are employing 'rife' approach in a marketing activities as contrasted with the shotgun approach used in a market aggregation.
market segmentation is a process of diaggregating the total market for a given product into a number of sub markets. the heterogeneous market is broken up in in a process into a number of relatively homogeneous units. the process is based on the recognisation that:
- any given market or customer group is made up of number of subgroup distinguish by wearing need and buying behaviour; and
- it is feasible to disagree get the consumer into suitable segment in such a manner that the characteristic would where is significantly among the segment but would almost identical with segments.
Advantages of Market Segmentation
- channeling money and effort to potentially most profitable market
- designing product that really match market demand s
- determining what promotional appeal will be most effective for the company
- choosing advertising media more identically and determining how to allocate better the budget among the various media.
- setting the timing of the promotional effort so that they are heaviest during those time when response is likely to be at its peak.
