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Market Segmentation and its Benefits
Market segmentation helps in optimizing the marketing mix for a segment. In this unit, we will examine the concept and bases for market segmentation.
All corporate marketing activities are done in such a way that they lead to the generation of surplus funds. Even in the case of non-profit and non-manufacturing set-ups, it becomes crucial to achieve marketing goals in the most economical way. This is so primarily because of budgetary constraints in such organizations.
One of the ways to obtain economies in marketing is to concentrate and focus the marketing efforts in respect of a well-defined homogeneous cluster of potential customers. That is, to choose its markets and serve them through target marketing.
In target marketing, sellers distinguish the major market segments, target one or more of these segments, and develop products and marketing programs tailored to each segment.
The Concept of a Market
Unless you know the exact market(s) to which your organization wants to cater, your focus will be wrong, and your planning will be faulty.
To identify the target market, let us first define the term market. The term market has more than one meaning:
A market is where people gather to transact business, sell and buy commodities, and other physical goods.
It is used in respect of the network of institutions like wholesalers and brokers dealing in a product.
Market Segmentation and its Benefits
Market segmentation helps in optimizing the marketing mix for a segment. In this unit, we will examine the concept and bases for market segmentation.
All corporate marketing activities are done in such a way that they lead to the generation of surplus funds. Even in the case of non-profit and non-manufacturing set-ups, it becomes crucial to achieve marketing goals in the most economical way. This is so primarily because of budgetary constraints in such organizations.
One of the ways to obtain economies in marketing is to concentrate and focus the marketing efforts in respect of a well-defined homogeneous cluster of potential customers. That is, to choose its markets and serve them through target marketing.
In target marketing, sellers distinguish the major market segments, target one or more of these segments, and develop products and marketing programs tailored to each segment.
The Concept of a Market
Unless you know the exact market(s) to which your organization wants to cater, your focus will be wrong, and your planning will be faulty.
To identify the target market, let us first define the term market. The term market has more than one meaning:
A market is where people gather to transact business, sell and buy commodities, and other physical goods.
It is used in respect of the network of institutions like wholesalers and brokers dealing in a product.