Market Segmentation: Market Segmentation

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Market Segmentation
This refers to the importance to divide markets into segments. This concept applies to all types of markets, however, in this segmentation the basis is for a new range of healthy cereals.
During the Industrial revolution the market was treated as a homogenous mass where the market is composed of customers having similar needs and wants, having only one similar product. Today, through research, we are aware that the market is heterogeneous composed of people having different needs.
A Marketing Mix that had worked out with one segment will not necessary work out positively with another segment. Healthy cereals will target health conscious people. This means that people living s healthy lifestyle, following a sports
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It is important for the cereal to be positioned within the consumers’ mind and ideally distinctly for competitors and their offering.
There are many benefits of segmentation
Effective segmentation should result in greater consumer satisfaction and should allow the marketing firm to catch those submarkets with the greatest potential instead of placing all the efforts in the total market.
Market segmentation makes the company more competitive as if you understand your target market members better than your competitors, your market position will improve, you will sell more, and your business will become more successful. It improves your market position by helping you to determine how well your products and services meet target market member’s needs compared to how well your competitors’ products and services meet those needs. This would offer protection from competitors as you would have a more distinct marketing
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It’s the plan for meeting a specific marketing goal for a specific marketing campaign. Your ability to set goals and to plan successful marketing strategies depends much on the information you acquire about your target market. So one of the benefits of market segmentation is that it provides you with that information. This also improves marketability of your product or service enabling you to determine your target market’s wants and needs. You just use multiple demographic segments to determine shared characteristics across segments, including personality (psychographic) and behavioral characteristics. You can then use the characteristics to improve the marketability of your present products and to enhance your new product marketing strategy.
It provides accurate targeting of the product to find the correct niche (large in value but small in size), enables the company to provide variation in the product and marketing mix to ensure maximum sales and profits. Fulfils the marketing concept (as better satisfy needs), helps to design and target the marketing mix and the promotional mix more accurately and efficiently and enables effective market targeting and

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