Question

importance of market segmentation? 300 words

Answer 1

The market usually consists of existing and potential customers. The classification of the market on the basis of some common characteristics is known as Market Segmentation. It has much Importance.
1. It one of the main tools for satisfying the customers. Because the company will classify the market on the basis of the customers who are ready to buy their product. So they can provide goods at their preferred quality, choices, etc. It will satisfy the customers completely and build loyalty in their minds. It helps to maintain the brand image.
2. Through proper marketing, segmentation company can follow an appropriate marketing strategy which is absolutely suits to their particular segment. Market segmentation gives a clear picture of the nature of each group and the company can establish a well-organized strategy for them. It will lead to higher market responses and feedback and this will help to resolve any mistakes. This will ultimately result in the productive uses of resources and increased profitability.
3. Market segmentation offers a different segment of the market an opportunity to know about the needs and wants. Through market segmentation, the company can make a proper marketing program Or mix and it also helps to gain market response. The market segment provides a detailed study of the factors of the market. Thus it will help to make a proper understanding of the market.
4. Market segmentation provides more understanding of the market. Thus the products can be manufactured according to the needs of the people. This will helps to increase sales as it can attract a distinct group of customers. When the sales increases it will positively affect the profitability of the company.
5. Market segmentation provides the opportunity of utilizing the resources at their optimum level. It is because due to market segmentation the resources are being allocated as per the demand, which helps in ensuring that resources aren't wasted at all. Also, it helps in eliminating the chances of mismatching. In a manner, we could undoubtedly state that segmentation helps in the effective use of resources.
6. The competitive strength of the company would be increased due to market segmentation. It would ensure high competitive performance and would provide the chances to stand against their competitors and respond to them as robust as the entity can. Also, it would help in creating and sustaining loyal customers.
7. Market segmentation helps to collect valuable and important information for the company. It helps to specify more into the target market. Thus we can understand them in a better way and collect their related information. This type of information is very useful in the development of the product, research, and the evaluation of various marketing activities. It leads to more effectiveness and efficiency.
8. Market segmentation helps to have a close relationship with the customers. So we can able to know their needs and wants and also the changes within these habits. Thus, marketers can set a future plan or trends, and it opens new ways for opportunities. So, they can identify the current market opportunities and can also plan for the future.