What is segmentation in marketing
For what is segmentation in marketing any company to be successful it is important for the company to devise the right marketing strategy before they launch a product. Every one of us is aware of the 4 P’s of marketing, which are Price, Place, Product, and Promotion. Before a company launches a product the company has to be aware and make sure of what customers are going to sell this product. The market for a product is nothing but the customers who buy the product. We are aware that customers for a product vary in needs, motives, characteristics, and buying behavior. For example consider a table, students but for reading or for placing books, On the other hand, a bigger organization may use it to place sewing machines and use them to run their business. The motive for buying the product is different for various customers. Some people prefer going to a shop and buying the product, whereas other people buy the product when a salesman comes and explains the product at their home. Here comes the buying behavior. The market is very heterogeneous and the organization has to be aware of what needs to be served and whom to serve. So it is the duty of the marketing department to break the heterogeneous markets into small and subunits so that the customers can be served effectively. Breaking of a heterogeneous market into smaller subunits is called segmentation. This means that the subunits require separate product and marketing strategies to serve them better. The marketing mix has to be designed effectively in order to achieve customer satisfaction. The next question comes: what are the benefits of segmentation? Here are a few benefits of segmentation,
- By segmenting the market the company or organization would be able to pick up the target market properly. By doing this the marketer would clearly understand what segment of the market to target and deliver based upon his situation and achieve customer satisfaction.
- By segmenting the market, the marketer will clearly understand the needs and requirements of every segment of the market and make offers that match the people of the particular segment. When customers are handled after the segmentation the needs and requirements are homogenous thereby retention of customers is very much easy and possible.
- Segmentation ensures that the target market is homogeneous, No company in the whale world can afford to target each and every person present. As resources are limited for any firm, they cannot afford to tap the entire market. By doing this the available resources can be used effectively and earn maximum profits.
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