market segmentation: For a company to be successful it not only important to develop a product, but also market the product. What does marketing a product mean? Marketing means delivering the right product to the right customers at the right time.
What does right customers mean in the above line? For suppose you are the marketing head of your organization and your company develops a beauty product. Now as the head of marketing your team has to decide the customers of the product.
what is not a benefit of using segments to analyze data?
Customers vary a lot. Customers vary a lot based upon the differences ,similarities . Customers within a group are more similar and vary a lot with the other groups. Companies become successful by selecting a well defined group of potential customers, Developing a distinctive and unique product better than your competitors of a market, Focusing on market and developing strategies to acquire and retain profitable customers.
In this article we will concentrate more on business marketing. Business marketing consists of 3 main categories of customers- commercial companies/organizations , institutions and government organizations. In each of the sector there are diverse organizations based upon the size, purchasing structure, decision making style etc. Each and every sector will have unique needs and require a different marketing strategy. For example some people require high quality and more after sales support and some other customers comprise on the quality and demand a low price for the products. Some customers wants to have a close relationship with the suppliers whereas some customers prefer a short term relationship Segment represents a group of potential and present customers with common needs and Requirements.
Segmenting the market has many benefits.
- Segmentation helps a marketer to identify his target market properly. By segmented the market the marketer can understand the needs of a particular group or segment and try to deliver the customers with full potential
- When the market is segmented marketer can crystallize the market based upon the needs and make offers that suit them. When customers are handled after segmentation the response from people of this segment will be homogenous.
- Segmentation ensures that marketing efforts are reduced and minimized. Many forms have limited budget and segmenting the market helps them to deliver the product with full potential. The firm would benefit from the efforts after segmenting the market
- By segmenting the market the company can identify the less satisfied segments and the company can develop marketing strategies to target that particular segment and fulfill their needs.