Question

Explain in ten sentences or less the pros and cons of either the Market Segmentation Approaches of Concentration or Multi-segment?

Answer 1

Concentration strategies of market segmentation will be advocating that company will be choosing to focus the marketing effort on single segment only and only one marketing mix is developed so this concentration strategy is helpful because it will be enabling organisation to focus upon the needs and wants of one segment and it will be taking steps in order to maximization of the profit related to that segment and it will divert all the focus on that particular segment. Disadvantage related to concentration strategy is that, if demand in that focused segment will decline the financial position of the organisation will also decline because there is too much of dependence.

Multi-segment strategy of segmentation will be advocating that company will be focusing its marketing efforts on two or more than two market segments and Organisation will be developing a distinct mix for each segment so they will be developing the marketing program related to both the segment and this type of strategy will be advantages because it can increase the total sales since there is a larger customer coverage and more marketing programs are engaged. The disadvantage related to the multi-segment is that it is higher cost which has been a arising out of the need for the multiple marketing programs for two distinct segments.