Market segmentation gives a better understanding of consumer needs, behaviour and expectations to the marketers. The information gathered will be precise and definite. It helps for formulating effective marketing mix capable of attaining objectives. The marketer need not waste his marketing effort over the entire area. The product development is compatible with consumer needs, pricing matches consumer expectations and promotional programmes are in tune with consumer willingness to receive, assimilate and positively react to communications. Specifically, segmentation analysis helps the marketing manager.
v To design product lines that are consistent with the demands of the market and that do not ignore important segments.
v To spot the first signs of major trends in rapidly changing markets.
v To direct the appropriate promotional attention and funds to the most profitable market segments.
v To determine the appeals that will be most effective with each market segments.
v To select the advertising media that best matches the communication patterns of each market segment.
v To modify the timing of advertising and other promotional efforts so that they coincide with the periods of greatest market response.
In short, the strength of market segmentation lies in matching products to consumer needs that augment consumer satisfaction and firm’s profit position. However, the major limitation of market segmentation is the inability of a firm to take care of all segmentation bases and their innumerous variables. Still, the strengths of market segmentation outweigh its limits and offers considerable opportunities for market exploitation.
No comments:
Post a Comment