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Q. Explain market segmentation? Tell need to segment the markets?
OR
Clarify the term market segmentation & briefly explain the need to segment the market?
Ans.: Markets are not homogenous and they are made of various segments. A market is the aggregate of consumers of a given product & consumers vary in their characteristics parching behavior. It is possible to disaggregate the consumers into segments in such that in require characteristics and buying behavior; the members vary considerably among segments.
Segmentation profit the marketer as:-
For example: Ford Strategy - Through segmentation car manufacturers have achieved useful insights on the product features to be provided to different segments of car buyers.
Advantage the customer as well.
Then, to compete more effectively, various companies go for target marketing which can establish and communicate the distinctive advantage of the company's market offering. This procedure is called as market segmentation.
For example.: GM has recognized 40 different customer requirement & 40 different market segments in which it would be present with its vehicle.
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