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The Merits Of Market Segmentation Strategy

By Lana Bray

Market segmentation strategy refers to a given mode of arrangement in a market place. Under this arrangement, various vendors with various products are stationed in different places. Any individual that goes against the arrangement is likely to land in trouble.

The separations are set out depending on the various sections. Here, a place where a certain group of commodities is sold is separated from another place where different commodities are sold. They are segmented such that edibles are located at one place, outfits in a different place, shoes in a different section and machinery in another different section, among other divisions.

The way the markets are sectioned depends on the level of development in that particular place. Those in very big urban centers usually do so by means of stalls. Here, market malls are put in place and clearly labeled according to the commodities they contain. In more local places however, the segmentation may in fact be just defined by word of mouth, or done by some primitive means such as through the use of wooden structures.

This practice may be endorsed by the government. Here, the task is conducted by the local authorities. These ones set out to go segment the noted selling places and clearly setting out where each commodity should be situated. Regular checks are then conducted and anyone found breaking the set rules is fined heavily. When it is in the case of selling places in very local places that are not under any local authorities, then the people using the market may just decide to set local rules amongst themselves.

The reasons behind the adoption of this system by various people vary. In the very developed countries, it is adopted because people there cherish organization. This is a rather civilized way of running ventures. As such, almost all such countries have implemented it, so as to achieve smooth running of events in all places.

There are very many advantages associated with this arrangement in market places. For one, food does not get to mix with other substances. This therefore keeps what is to be consumed free from any form of contamination. Besides, people do not have to keep walking through the place trying to find vendors selling particular products which at times may even be too few hence difficult to trace. People also conduct their purchases in a highly organized manner.

The demerits however are also there. If a vendor is selling a particular product, she is only supposed to stay in that stall for as long as she keeps dealing in the same commodity. This may not turn out very good. Keeping the sellers in one place limits their interaction with other vendors, hence cannot even share ideas on how to diversify their services and products.

Market segmentation strategy has with time proven more appealing than running markets in a disorganized way. Many people who did not appreciate the strategy in the past are now in full support of it. Many markets across the globe have implemented the format.

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