Need for Market Segmentation (Why Market Segmentation?)Not all individuals have similar needs. A male and a female would have varied interests and liking towards different products. A kid would not require something which an adult needs. A school kid would have a different requirement than an office goer. Market Segmentation helps the marketers to bring together individuals with similar choices and interests on a common platform.
- Market Segmentation helps the marketers to devise appropriate marketing strategies and promotional schemes according to the tastes of the individuals of a particular market segment. A male model would look out of place in an advertisement promoting female products. The marketers must be able to relate their products to the target segments.
- Market segmentation helps the marketers to understand the needs of the target audience and adopt specific marketing plans accordingly. Organizations can adopt a more focussed approach as a result of market segmentation.
- Market segmentation also gives the customers a clear
view of what to buy and what not to buy. A Rado or Omega watch would
have no takers amongst the lower income group as they cater to the
premium segment. College students seldom go to a Zodiac or Van Heusen
store as the merchandise offered by these stores are meant mostly for
the professionals. Individuals from the lower income group never use a
Blackberry. In simpler words, the segmentation process goes a long way
in influencing the buying decision of the consumers.
An individual with low income would obviously prefer a Nano or Alto instead of Mercedes or BMW.
- Market segmentation helps the organizations to target the right product to the right customers at the right time. Geographical segmentation classifies consumers according to their locations. A grocery store in colder states of the country would stock coffee all through the year as compared to places which have defined winter and summer seasons.
- Segmentation helps the organizations to know and understand their customers better. Organizations can now reach a wider audience and promote their products more effectively. It helps the organizations to concentrate their hard work on the target audience and get suitable results.