Essay Market Analysis : Market Segmentation

793 Words Jun 13th, 2016 4 Pages
By using market segmentation, it means distinguishing a market into groups of buyers who have different needs, different behaviors, or characteristics who might require separate products or marketing programs (Kotler & Armstrong, 2013).

Segmentation become one of the most important concept in marketing. Rather than trying to compete in an entire market, against superior competitors, each company should adopt a strategy of market segmentation, and identifying the segments of the market. Market segmentation makes the marketing more effective, thus the marketers will better understand their target audience first (Larsen, 2010). Companies hope for a higher sales and a stronger position within each market segment by offering product and services and also the variations of marketing to segments. The marketers should select not only on the basis of their sales and profit potential, it should also reference to the firm’s ability to match or exceed competing offerings directed to the same segment. Doing some research, will show that certain market segments are “under-served,” meaning that their needs are not well met with the existing suppliers. For instance, in many emerging-market economies, the enormous numbers of consumers, have incomes that are too small to attract the interest of service businesses accustomed to focus on the needs of more affluent customers. However, small wage earners represent a big market and may offer a greater potential for the future (Lovelock & Wirtz,…

Related Documents