Market Segmentation · 22 November 2005, 05:12 by Admin
Segmentation or subdivision of the market is based upon the modern marketing concept i.e. market-oriented strategy and philosophy. Segmentation gives special emphasis on the demand side of the market. It is more rational and more precise adjustment of the product and marketing effort is tuned with consumer needs and requirements.
Marketing segmentation is a method for achieving maximum market response from limited marketing resources by recognizing differences in response characteristics of various parts of the market. In a sense, market segmentation is the strategy of “divide and rule”, i.e. dividing in order to conquer them. For different Groups of customers companies have different sets of marketing strategies. Segmentation strategy is an answer to the question “To whom shall we sell our products, and what should we sell them?” It is strategic choice concerned with “doing the right things” as opposed to tactical choice, “doing things right”.
Simply put, segmentation means breaking up of something into smaller pieces. “Woodz” define segmentation to be the process of dividing a potential market into distinct subsets of consumers with distinct needs and characteristics and selecting one or more segments to target with a distinct marketing mix. The necessary conditions for successful segmentation according to “Woodz” are as follows:
•A large population
•With sufficient money to spend
•And sufficient diversity
•To be capable of being partitioned