The Role of Market Segmentation
Need a research paper on the role of market segmentation. Needs to be 6 pages. Please no plagiarism.
The concept of marketing asks for a proper understanding of the consumers and then satisfying their needs before the competitors take advantage of it. Still, customers are diversified in their tastes and it is hardly possible to satisfy all the customers at the same time and with the same set of products or services. But there is no straight-line path for achieving such a feat. It depends upon product to product, service to service, organization to organization, and upon various other certain criteria. For example, a single product organization may acquire high sales and cut down advertising costs if they can target customers with a high probability of product purchase. Market segmentation helps not only reduce the efforts of the marketers in targeting their potential customer base but also plays a major role in developing a sense of customer loyalty among the customers to the new as well as the existing customers. In effect, it will help the marketers to understand their customers in a much better way than before. Distributing questionnaires to the customers form an important part of market segmentation. Through the help of questionnaires, the company will be able to better evaluate their products or services. Thus, suggestions from the customers would help the marketers understand their lacking and thus work upon it, which in turn will help in creating a stronger relationship between the marketers and their customer base (NetMBA, n.d.).
Markets are generally large and diversified. Every customer is different from one another in several respects and thus to narrow down the diversities of the customers or the market, they can be segmented on such following characteristics which are geographic, demographic, psychographic, and behavioral.
For example, geographic segmentation may include variables such as region, size of the area segmented according to size of the population, the density of population in a particular area.