The literature on market segmentation and its various aspects Essay

The literature on market segmentation and its various aspects - Essay ExampleThis research will begin with the statement that we are living in a global village. With the advancements in the fields of science and technology, the world is getting approximate and closer and this fact is impacting the business world too. As a result of globalization, the customer base of the arrangements is also increasing, leading to more diversification, especially in terms of their inescapably regarding specific products. This situation made the marketers develop a strategy that we call segmentation. The literal meaning of segmentation is to divide into pieces. It is often taken in the scene of classifying the things into different groups so that all the objects in one group are identical to one another, sharing a common profile and on the tail end of those factors, are different from other segments. This analogy has been borrowed by marketers in the same context. In the field of marketing, mark et segmentation is the process of dividing the market into similar groups such that individuals/businesses within each group share common characteristics. Used for Profiling, Trade Area Analysis. Segmentation is the process of partitioning markets into groups of potential customers with similar needs and/or characteristics who are likely to exhibit similar purchase behavior. Market segmentation is a marketing approach that encompasses the identification of different groups of customers with different needs or responses to marketing activity. The market segmentation process also considers which of these segments to target.... egmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that differences between buyers within each segment are as small as possible. Thus, every segment faeces be addressed with an each targeted mar keting mix.(Bennette 1998)One of the most important strategic concepts contributed by the marketing discipline to business firms and other types of organizations is that of market segmentation (Myers, 1996).Market Segmentation is considered and propagated by the marketing gurus as yet another step ahead of the previous ones in order to make the marketing plans and their implementation more effective and in force(p) in terms of its productivity. It is considered by them as a newer development in the domains of marketing research.Why SegmentationThere are a number of reasons to do market segmentation. Few of them, as available in literature, are stated belowBetter serving customers needs and wantsThe foremost advantage of segmentation is that it helps to set the customers needs and wants in a more effective manner. .(Aker 1991)Higher ProfitsAs a result of segmentation, due to development of of separate strategies for each of the segment, the organization would be catering greater nu mber of customers in each segment than what it had been serving for each segment without segmentation. This would lead to higher profits. (Asael 1987)Opportunities for GrowthThe organization can grow in terms of its volume of sales as well as customer base.Sustainable customer relationships in all phases of customer bread and butter cycleAs a result of the customized strategies for each segment, a Sustainable customer