Market segmentation criteria can bring market opportunities to product marketer as it enables the marketers to select the target market and offer appropriate marketing mix and the essence of segmentation is to identify consumer demand. Considering the rising cost of production, distribution and promotion, precise market segmentation has assumed considerable importance in marketing management. Individual sellers can prosper through creatively seriving specific market segments whose needs are imperfectly satisfied by the mass-market offerings. The main benefits of markets segmentation are :
a) The manufacturer is in a better position to find out and compare the marketing potentialities of his products and is able to judge product acceptance or to assess the resistance to his product. b) The result obtained from market segmentation is an indicator to adjust the production, using men, materials and other resources in a most profitable manner and the organization could allocate and appropriate its efforts in a most useful manner. c) Changes required may be studied and implemented without losing markets. Once the product becomes obsolete, the product line could be diversified or even discontinued. d) It helps in determining the kinds of promotional devices that are effective and also their results. e) Appropriate timing for the introduction of new products, advertising, etc., could be easily determined. The requirements for the market segmentation to be effective are : a) The first condition is measurability, the degree to which information exist or is obtainable on the particular buyer characteristic. b) The second condition is accessibility, the degree to which the firm can effectively focus its marketing efforts on chosen segments. c) The third condition is substantiality, the degree to which the segments are large and/or profitable enough to be worth considering for separate marketing cultivation.
Segmentation is classified as follows:...
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