The Importance Of Segmentation – Article Example
The Importance of Segmentation The Importance of Segmentation When a firm allows its marketing program focus on the compartment of prospects that are most likely to purchase what it is offering, the firm is purposefully segmenting its market. Truthfully, when carried out merrily it helps insure the highest returns for the firm’s marketing expenditures. According to Wall Street Journal, segmentation facilitates consumer-oriented marketing. It enables businesses to facilitate the formation of marketing-mix, which makes it possible for firms to be more specific and useful in achieving marketing objectives (Lamb, 2011). This paper will give a new statistical importance of partitioning market into coherent segments by enlisting both short- and long-range benefits of segmenting.
Based on characteristics of segmentation that include age, geographical area, gender, income, and buying behavior of consumers, segmentation is vital since it facilitates introduction of marketing mix that suits the market. Thus, producers are able to understand customer needs, behavior, and expectations. This information is vital as is accurate and purposefully usable. In addition, market segmentation facilitates introduction of effective strategies of products ensuring that development is compatible with consumer’s needs. Segmentation makes it possible for firms to select promising markets hence identify which markets it can serve with limited resources. As such, a firm can concentrate in the most profitable market segments hence exploit better all the available market opportunities (O’Guinn, 2011).
In summary, segmentation enables firms to link promotion with the market through selection. In so doing, promotion enables the firm to advertise, its products effectively which in turn makes advertising result oriented. With promotion, segmentation provides special benefits to small firms since they can easily identify markets with huge returns hence concentrate on them. Segmentation as a modern marketing tool facilitates efficient use of company resources in the most efficient manner (Cahill, 2006). Having explained the importance of segmentation, it is worth noting that, market segmentation and its characteristics are beneficial not only to the marketing companies, but also to consumers. Therefore, along with the merits of segmentation suggested, this paper makes a case in favor of segmentation.
Cahill, D., (2006). Lifestyle market segmentation. New York: Routledge.
Lamb, C., et al., (2011). MKTG 5. Ohio: Cengage Learning.
O’Guinn, T., et al., (2011). Advertising and Integrated Brand Promotion. Ohio: Cengage Learning.