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Market Segmentation Strategies

Market segmentation involves dividing consumers into groups based on characteristics like needs and wants. It allows businesses to develop targeted marketing strategies for each segment by understanding their preferences. Effective segmentation identifies the market, understands customer needs, ensures appropriate product features are promoted using relevant promotion methods, and has benefits like more effective marketing, identifying gaps, and increased sales and profits.

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hassan hani
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39 views3 pages

Market Segmentation Strategies

Market segmentation involves dividing consumers into groups based on characteristics like needs and wants. It allows businesses to develop targeted marketing strategies for each segment by understanding their preferences. Effective segmentation identifies the market, understands customer needs, ensures appropriate product features are promoted using relevant promotion methods, and has benefits like more effective marketing, identifying gaps, and increased sales and profits.

Uploaded by

hassan hani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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3.1.

4 How and why market segmentation is undertaken


Market segmentation is the first important step in developing a marketing strategy. In
order to plan their product development, pricing strategies, and promotions, businesses
will divide up the consumers who are likely to buy a product into different market
segments.

Effective market segmentation should:

● identify the market


● identify the wants and needs of the target market
● ensure that the most appropriate features are promoted
● ensure that effective methods of promotion are used.

The market-oriented firm has the ability to identify the target market of consumers with
particular characteristics at which to aim a product and marketing strategy.

Market segmentation recognizes that all potential users of a product are not alike, and
that what appeals to one group may not interest other consumers.

Example:
Ways to segment markets:
Benefits of segmentation

If a business is able to segment the market effectively, there are a number of benefits
that can be seen"

1. More effective marketing


○ appeals to the price, place, product, and promotional preference of the
target customer.
2. Easier identify gaps in the market
○ products can be adapted to exploit unmet needs.
3. Increased sales and profits
○ a larger customer base with specific needs leads to increased income.

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