AN EVALUATION OF MARKET SEGMENTATION AND IT’S SIGNIFICANCE
Market segmentation is the process of choosing one or more segments to target with a district marketing mix after segmenting the market into district subsets of consumers with shared requirements or characteristics. Prior to market segmentation becoming widely accepted, mass marketing, which involves providing all customers with the same product and marketing strategy, was the most common method of engaging with consumers.
The segmentation approach enables companies to avoid direct rivalry in the market by differentiating their offerings in addition to pricing, such as through packaging design, marketing appeal, distribution channels, and improved service. Consumer segmentation research costs for shorter production runs and varied advertising efforts have been found to be more than compensated by increased sales, according to marketers. Most of the time, customers are happy to pay more for products that more closely meet their unique demands despite the pass-through cost rise.
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