Semester : 6th Assignment No:02
Siraj Munawar (Bs-910)
Dr. Qadir Baloach
Date of Submission:
ISLAMIA COLLEGE PESHAWAR
This assignment would not have been possible to complete without the support of my teacher Dr. Qadir Baloach. I want to express my gratitude to his supervision and guidance which was abundantly helpful and offered valuable assistance. Special thanks to all my friends especially Mehran and Ahmad Alam for sharing the literature and giving valuable assistance. Finally, I want to express my gratitude to my beloved family, for their understanding and endless love through the duration of my studies.
Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts for the services. The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. Generally marketers segmentize the market into geographical, demographical, psychographic and behavioralistic segmentation.
CONSUMERS MARKET SEGMENTATION
A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Definition of Market Segmentation:
The market segmentation was first put forward in the middle of 1950s by Wendell.R.Smith, an American professor of marketing. “Market segmentation is to divide a market into smaller groups of buyers with distinct needs, characterastics, or behaviors that might repquirs separate products or marketing mixes.” (Lamb, 2003). The division of a market into different homogeneous groups of consumers is known as market segmentation. Rather than offer the same marketing mix to vastly different customers, market segmentation makes it possible for firms to tailor the marketing mix for specific target markets, thus better satisfying customer needs. Not all elements of the marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ. The Need for Market Segmentation:
The marketing concept calls for understanding consumers and satisfying their needs better than the competition. But different consumers have different needs, and it rarely is possible to satisfy all consumers by treating them alike. Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. Mass marketing allows economies of scale to be realized through mass production, mass distribution, 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...