MARKET SEGMENTATION

The Benefits of Market Segmentation and Marketers Criteria

The Benefits of Market Segmentation and Marketers Criteria

The Benefits of Market Segmentation

Strategic marketing planning process, the wording of the mission and vision to the choice of target markets, as well as the development of specific marketing mix and positioning targets for each product or service the organization offers. Leading authors like Kotler real organization, value creation and delivery sequence. In the first stage, choosing a value strategist income market segment, select the appropriate target market and develop proposals for the positioning of the value of the formula -. segmentation, targeting, positioning (STP) - is the essence of strategic marketing. "(Kotler, 1994, p. 93). Market segmentation is an adaptive strategy. It consists of a section of the market in order to select one or more market segments that the organization can target through the development of specific marketing mixes, which are adapted to the specific needs of the market. But market segmentation should not be purely an adaptive strategy: the process of market segmentation may also consist of a selection of these segments, for which the company may be particularly well suited to serve in the presence of competitive advantages over competitors in the segment, reducing the cost of adaptation in order to enhance niche. This application of market segmentation is the goal of developing competitive areas that may have "enormous impact on competitive advantage, since it involves the configuration of the value chain." (Porter, 1985, p. 53).

The purpose for segmenting a market is to permit your marketing/sales program to aim on the subset of prospects that are "most likely" to buy you're offering. If it is done properly this will help to insure the highest return for marketing/sales expenditures. Increased competition makes it difficult for the mass marketing strategy for success. Customers are becoming more diverse and companies are constantly differentiating their products compared to competitors.

When the emphasis is on segmented markets, marketing companies can better meet the needs of this group. Market Segmentation allows companies to focus their resources more efficiently and with greater chance of success. Marketing, product and brand managers are constantly asked to increase their return on investment. They are constantly looking for new information on their markets, as well as new approaches to them.

Depending on whether you are trading your proposing to individual buyers or a enterprise, there are definite dissimilarities in what you will address when defining market segments. The benefits of segmenting a market are as under:

Segmentation is a useful approach to trading for the smaller firms. It allows target markets to be agreed to business competencies and makes it more achievable for the lesser companies to create a defensible niche in the market.

It assists recognizing gaps in the market that are not served or under-served. These can supply localities for new merchandise development or extension of the living merchandise or service range.

In mature or falling markets it may be likely to recognise specific segments that are still in ...