IMPORTANCE OF MARKET

SEGMENTATION

NAME: VIKRAM KRISHNA

STD: T.Y.B.COM
ROLL NO: 305 (B)
DATE OF
PERSENTATION:11-10-16

Meaning :

William Stanton, Market

segmentation is the process of dividing
the total, heterogeneous market for a
product into several sub markets or
segments each of which tends to be
homogeneous in all significant aspects.

Importance of Market
Segmentation

1. Market opportunities:

Marketing segmentation
enables the market to identify the market
opportunities . Generally , a marketing
segmentation arises when there is a gap
between customer expectations and current
product offering by the existing firms.

2. Product development:
Market segmentation help in
designing products that match the demands of
the target audience. Product with good market
potential may be designed to generate
customer satisfaction.

3.Promotional-mix:
A company can develop appropriate promotion-mix depending
upon the market segment.
. Nature of the product.
. Nature of the customer.
A company may focus more on sales promotion such as
discounts, exchange offers, free gifts, etc.

4.Pricing products:
The market segmentation enables to fix the right prices.
Since different market segments have different price perceptions,
it is necessary to adopt different pricing strategies for different
markets.

5.Distribution strategies:
Market segmentation also assists in adopting
suitable distribution strategies. Different market
segmentation may require different distribution mix

6.Media selection:
It help in selection of advertising media and in allocating funds to
various media. The funds are allocated to varies media depending upon the
target audience, nature of the product, competitors advertising etc. for
instance, if the target segment consists of mass customers, a company may
select mass media to advertise the product.

7.Better service to customers:

Market segmentation enables the company to concentrate its market
effort in a particular market area, thereby, providing a better service to the
target customers. Proper marketing segmentation can facilitate customer
satisfaction.

8.Customer loyalty:
Market segmentation can generate customer
loyalty. Due to marketing segmentation, a firm adopts
appropriate marketing-mix depending upon the target
customers. Proper blending o marketing-mix results in
customer loyalty, repeat purchases by satisfied
customers.