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The Importance Of Market Segmentation

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Market segment and it is a key element of market-based strategy. Segment of the market is a specific set of customers with outstanding customer needs, buying behaviors and various descriptive characteristics. (Best , 2000) according to the classification markets in the sub-sectors, targeting marketing efforts in such a way to meet the technical and other needs of all of this , organizations may be able to secure a competitive position than if they were trying to meet the general requirements of the market as a whole.

There are four criteria that must be satisfied in order to market segmentation to be effective. It should be part of the market can be determined, a large, accessible and stable. Recognize that there should be indicators can be …show more content…

Age segmentation is one of the most widely used bases for market segmentation which is generally easy to measure the size of segments. Individuals usually go through a number of family roles, and that at each stage of development, an individual’s buying behaviors are likely to change as well as their ability to pay for those purchases will also change. Gender is also a very commonly used basis for segmenting markets as it is an easy one to measure and the firms can have a reasonably good idea of the gender-specific market in any given area. There is evidence that various ethnic groups retain distinctive preferences in their purchases which distinguishes them from the native community. Households differ in their size and composition in which these differences are associated with varied buying …show more content…

People of similar age and socio-economic status may lead rather different life-styles, and firms have been quick to adapt their products to meet the needs of these life-styles. Attitudes are more difficult to categorize and maybe revealed only in subtle ways. Values can be more difficult to measure than attitudes and apparent inconsistencies may question the existence of a subconscious value system. Each segment is likely to respond in certain ways to variations in product design, packaging, pricing and promotion. In many markets, a segment can be found that shows considerable loyalty to a brand, whilst other segments will be prepared to switch between brands in response to products, with offering more benefits and, or lower prices. (Palmer,

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