benefits of market segmentation -ahmad faraz
TRANSCRIPT
1. Choice of Target market: It facilitates the right choice of Target market.It helps the
marketer to identify potential buyers and pickup their target market effectively.
2. Effective tapping of chosen market segment:It Facilitate effective tapping of the chosen market segment.It helps
to know and analyse the demands of each customer group and make offers that match them. It helps the company to know demand pattern of each segment thus increased the sale volume of the products.
3. Identify less satisfied segmentation:
● It helps to identify less satisfied segments and concentrate on them. It helps the marketers to know the segment still waiting to be served.
4.Productive and profitable market segmentationIt helps to concentrate efforts on most productive and profitable market segment instead of frittering over irrevelant, unproductive /unprofitable segment. Segmentation helps in focusing strategies more sharply on target groups that will give better profit.
5. FOCUS OF THE COMPANY● Segmentation is an effective method to increase the focus of
a firm on market segments.● This helps a company in changing its focus for better returns. ● Thus companies base their strategy completely on a new
segment which increases its focus and profitability.
e.g. Automobile companies have started focusing on small car segments.
6.CUSTOMER RETENTIONSegmentation ensures customer
retention(برقراری). It helps the marketer to understand the needs, behaviour, habits, tastes and expectation of consumers of different segments. Thus marketing opportunities increases.
e.g. Titan watches.● A watch is available for any
customer who enters a Titan showroom, whatever be his age, budget.
Titan has focused on price segment as well as life cycle segment.
7. MARKET EXPANSION
● Segmentation plays a crucial role in expansion. New customers are attracted because of segmentation strategy and thus opportunities are created for growth.
● One cannot expand in a market without any idea of which segment of customers one will be dealing with.
● e.g Reebok has expanded into clothes and accessories from being a shoe manufacturer.
8. INCREASE PROFITABILITY
● It affects the profitability of the firm. e.g. Nike, BMW showrooms.These brands target segments which donot bargain(سودا) or
negotiate( شنید و .Thus their profitability is high.(گفت
9. BETTER COMMUNICATION● Communication cannot be possible without knowing target
market. ● E.g. By limiting the audience, one can choose magazines,
websites, radio and TV stations, events that those customers
are more likely to hear, see, visit or attend.● This makes the marketing effort more economic and efficient.
Ahmad Faraz 0304-7765351 [email protected]
10. Better position in market It helps to achieve a better competitive
position for existing brands.
