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Market segmentation
Concept and definition: the concept of the market segment is based on the fact that the markets of the commodities are not homogenous but they are heterogeneous. Market represents a group of customers having common charactistics but two customers are never common in their nature, habits, hobbies, income and purchasing technique. They differ in their behaviour and buying decisions. On the basis of these characteristics customers having simple qualities are grouped in a segment.
According to the Philip Kotler, "market segmentation is sub- dividing a market into distinct and homogenous subgroups of the customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix".
According to the William J. Stanton, "market segmentation consists of taking the total heterogeneous market for a product and dividing it into several sub market of segments, each of which tends to be homogenous in the full significant aspects".
According to the R.S. Davas, "grouping of buyers or segmenting the market is described as market segmentation". The main aim of the market segmentation is to prepare separate programmes or strategies to all segments so that maximum satisfaction to the consumers of different segments may be provided. In the words of Philip Kotler "the purpose of the market segmentation is to determine difference among them or marketing to them".
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