Elucidate the advantages of market segmentation?
Elucidate the advantages of market segmentation?
Or
What are the benefits of market segmentation to a marketer and to the consumer?
Ans.
Advantages of Market Segmentation
1. Benefits to Manufacturer: A manufacturer can understand rather crystalise the needs of the target buyers. He can compare the potentialities of his products with those of his competitions. It also helps him to increase, reduce and adjust his products on the basis of predictions coming from different market segments. The acceptance and resistance of his product is also known to him. On the other hand if the buyers in a segment are handled properly the response from each segments will be homogeneous. He can now achieve specialisation in his product. Market segmentation can enable the manufactuer to make changes without losing buyers.
2. Benefits to Consumer : In segmented markets the consumer has the opportunity of choice. A segmented market speaks of the capabilities of firm and customer feels he can rely on it.
Importance of Market Segmentation
Importance of market segmentation can be explained as –
1. Market segmentation makes sure the best utilisation of available resources. The activities of market segmentation distributes the market into various groups of customers. With the help of market segmentation enterprise can adjust its marketing actions according to requirement and circumstances. If it will not be done resources of enterprise may remain unutilised. Because adjusted activities give optimum results. So the location of resources should be proper placed.
2. Market segmentation is helpful in marketing research. The study of market segmentation informs the tastes, habits, hobbies and nature of customers deeply. These types of researches are helpful in discovering the marketing opportunities.
3. It is also a tool of study of products, policies and strategies of competitors. Formulation of marketing policies and programmes becomes easy by the market segmentation. Thus facing of market competitors becomes easy for enterprise.
4. It separates the whole market into various segments and individual marketing programmes are formulated for each segments. These divided programmes are better and more profitable than a single programme for the whole market.
5. On the ground of market segmentation, different marketing programmes are formulated for different segments. These marketing programmes fix the standards for single segments. Real results can be measured and compared with the standards. Thus we can say that marketing segmentation is helpful in evaluation of marketing activities. It proves that where particular segment, the marketing actions are successful, and where particular segment and actions are failure.
6. Market segmentation is helpful in increasing the quantity of sales of the enterprise. It depends on the fact that multiple curves in market are profitable than a single demand curve. So it can be said that market segmentation is helpful in increasing sales of a enterprise.
On the basis of this discussion it is clear that market segmentation is very important for a enterprise. It separates the whole market of business in many classes and make it possible for the industry to make particular steps for particular segment. It is also helpful in studying trade cycles in business, changing moods of customers and consumers. It gives the real way for work plan.
