Question

why do firms need to target multiple segments? how it will affect the competencies of the firm.

Answer 1

Targeting multiple segments or Multi-segmentation is a strategy followed by firms that have a wide product range. The firm follows a different marketing strategy for each segment it targets. The consumer groups are divided into different segments and each segment is targeted based on consumer demographics, geography, consumer attributes, consumer tastes, product features etc.

The firms following the multi-segmentation strategy are usually having a portfolio of different products which cannot be targeted through mass marketing or focussing on single segment of the market. Such firms have competencies across different categories of products. For example, P&G is an umbrella brand under which different product brands such as Ariel (High end detergent),Tide (Low cost detergent), Whisper (Female hygiene), Gillette (male grooming), Pampers (Kids), Oral-B (Oral hygiene), Pantene (shampoo), etc exist. P&G must follow a multi-segmentation strategy in order to cater to the target market of each of its products.