Market Segmentation
Markets are Heterogeneous. Segmentation divides them into Homogeneous Sub-Units. "Segmenting" is a marketing term for dividing up your audience into groups according to particular criteria. The members of each group have at least one important factor in common with the other members of the same group, and that factor sets them apart from all the other groups.
The criteria that you use to determine your groups should have some relationship to how they'll respond to your message. Segmenting will help determine how you deliver your message as well as its content.
Benefits of Market segmentation
Facilitates Right Choice of Target: Market Segmentation helps the marketer to pick up his target market properly. It does this by enabling him to distinguish one customer group from another within market and by showing him, which segments of the market match his situation and should, hence, form his target market.
Facilitates Effective Tapping of the Chosen: Market Segmentation enables the markets to crystallize the needs of each of the chosen segments and make offer that match them. When buyers are handled after segmentation, the response from each segment will be more homogeneous. This in turn, will help the marketer develop marketing offers/programmers that are most suited to each segment’s. They can adapt the offers to the target segments the, achieves the specialization required in product, distribution, promotion and pricing for matching the particular customer group, and can develop marketing offers and appeal, that match the group.
Makes the Marketing Effort More Efficient and Economic: Segmentation also makes the marketing more efficient and economic. It ensures that the marketing effort is concentrated on selected and well-defined segments. After all, for most firms, the resources would benefits if its efforts were concentrated on selected segments- the ones that match the firm’s resources and are most productive and profitable.
Helps Identify Less Satisfied Segments and Concentrate on Them: Segmentation also helps the marketer to asses to what extent existing offers in the market matches the needs of different customer segments and which are the less satisfied segments.
