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The Importance Of A Market Segmentation Strategy

By Casandra Newton

The concept of market segmentation strategy is a type of promotion where the market is divided into various sections. In every area there are many products and services that seem homogenous. The area is divided using many criteria such as the level of income, the geographical as well as the demographic factors. The aim of all marketers is maximization of sales and a big consumer share.

The market division takes into consideration such factors as, social classes of people, behavioral changes, the economic status of the country and the different cultural practices. Once in the wide market, the opinions of people on the same product are different. Things such as profitability, retaining of customers and large extent of distribution of products are the key considerations of a salesperson. As a first step towards achieving effectiveness from this strategy, the advertising personnel have to undergo thorough training and enlightenment on the same.

A market strategy has more than one uses. Customers are the most important people here and they should be given priority. Competition is stiff as everyone focuses efforts on attracting more customers. Businesses give their best to their clients so as to ensure steady consumer loyalty. It is not easy to cater effectively for every client. Complains will always come on different issues.

An extensive research has to be done in order for one to have a successful sales strategy. To please all clients, the market segmentation will help a firm realize their exact needs. The products will be supplied efficiently with no hindrance to distribution. This helps to increase the number of people who order for the products of a firm. As a prominent supplier, it is recommended that a firm locates its premises at a suitable area.

Different factors are considered in the categorization of people according to social classes and lifestyles. These are inclusive of demographic factors, psycho-graphic aspects as well as behavioral divisions. How one views the products and services is not the same as other people view them. This is a good example of a psycho-graphic division.

The geographical location of a business is a key factor in determining the effectiveness of geographical segmentation. The climatic conditions of a particular geographical region can be favorable or unfavorable to a business concern. Some businesses develop and do well in some geographical regions and perform poorly in others. Social factors are among the major determinants of demand for a product. Demographic dynamics also play an important role in planning and implementation of sub-division.

Demography as a segmentation policy looks at the structure of the population. Clients play an important role in successful promotion of a product. The masses advise a salesperson on how his or her product should look in order to gain demand. Variables such as education, income, and size of the family, age, gender and the status of an economy are considered.

Another marketing policy that could be used is the behavioral segmentation. Here a person tends to see the kind of services and products a firm produces and comments on them. Comments will mostly concern the variables closely related to a particular product brand, the uses and benefits of the product.

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