An organization cannot satisfy all the needs and wants of all the consumers. Therefore, Market is divided into different segments so an organization can focus on the needs and wants of the specific consumers who share similar needs and demonstrate similar buyer behavior. In the world, there are different types of buyers with their own needs and behavior. Segmentation is the process to match groups of the purchasers with same needs and wants. Market segmentation:
The division of a market into different groups or the process of splitting customers in a market into different groups or segments, within which customers show similar buying behavior and share a similar level of interest in the same set of needs and wants satisfied by a marketer is called Market segmentation. Reasons for segmentation of market:
The reason for segmenting a market is to allow your marketing program to focus only on the segment that is most likely to buy your offering. Market segmentation makes possible how to use marketing mix for different target markets. A company is then able to determine which groups of customers are best suited to serve and which product and service offers will meet the needs of the customers and will satisfy them. Therefore, the main objective of segmentation must be how to win and retain the customers you want to serve. If the segmentation process is done properly then it will insure the maximum return for your marketing and sales expenditures, depending on what you are selling and whether you are selling your offerings to individual consumers or a business.
Levels of Market Segmentation
Dividing the market into different segments on the basis of homogenous need. Segmented on basis of broad similarity with regard to some attributes. Segmentation is also sometimes identifying, capturing & retaining potential new markets. Individual...