Market Segmentation: How Important it is for any Business

Market Segmentation

Market segmentation is dividing the heterogeneous market in to relatively small group on the bases of homogeneous characteristics. There are many grounds a company can use to identify segments that suitable for its products. without proper segmentation a company cannot even sell its product to customers because they even don’t know who are their customer?

The Grounds for Segmentation

  • Gender
  • Price
  • Interests
  • Culture
  • beliefs
  • Location
  • Religion
  • Income
  • Size of Household
  • Age
  • Education
  • Occupation
  • Social Class
  • Ethnicity
  • Nationality
  • End use (Example work or leisure)

Benefits of Segmentation

There are many benefits taken from the segmentation:

  • Easily measurable
  • Easily approachable
  • Easily accessible
  • Possible to earn large profits from that particular segment
  • Possible to collect large market share
  • It can be cost effective policy
  • Deciding marketing mix for particular segment is more easy
  • Market segmentation helps to position your product

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