Introduction
Market segmentation, much like its name implies, is a marketing strategy which is involved in the division of a target markets into subsets of markets with consumers who have common needs and wants. Market segmentation then designs and implements strategies to target the customers’ needs and wants by using various channels and other options. Market segments allow companies to create product differentiation strategies to target them. Market segmentation is extremely important in marketing as it allows for customization of products/ services to the customers that have the potential to buy them. Segmentation Marketing may be based on broad markets or small sub-segments. Mass marketing is the process or strategy to use the same marketing channels for all consumers without identifying the needs of a specific group of people. Mass marketing strategy employs mass promotion, mass production and mass distribution in the same way for mass consumers. In the past, companies have used mass marketing to achieve the economies of scale. However, times have changed, and it is almost impossible to create products to appeal to the entire market. Pursuing this strategy, several companies have lost their market leadership or a considerable chunk of their market share. As the customers are looking for the customized services, the marketer can satisfy them by considering the segmentation strategy. The market segmentation strategy is followed by the market targeting and the market positioning strategy.
Description
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers, who have common needs and priorities, and then designing and implementing strategies to target them. Market segmentation pertains to the division of a set of consumers into persons with similar needs and wants. Market segmentation allows for a