Types Of Market Segmentation Methods Essay

720 Words Nov 2nd, 2016 3 Pages
Marketing is defined by Armstrong and Kotler as “Dividing a market into a distinct group of buyers who have distinct needs, characteristics, or behaviour and who might require separate products or marketing mixes” (Armstrong and Kotler, 2005: 54). Market segmentation is when a vast target market is divided into groups (segments) who share similar needs, requirements and interests. This in turn helps businesses to alter their products and/or services to successfully break into that specific target market. In this assignment I will be discussing the three main types of market segmentation methods; concentrated, differentiated and undifferentiated.
The first method I will be discussing is the concentrated segmentation method; this method is used when companies are wanting to target a single market segment using a single marketing mix. This method carries benefits as it allows companies to focus the efforts of its marketing team on understanding their given market to the best of their abilities. This will give a business a better understanding of what they need to do to succeed within their given market and if needs be will be able to make necessary alterations to their product to give it a better chance of succeeding within the market. This will also allow them to be able to compete with bigger businesses. However, businesses may suffer due to the fact their knowledge is only in that field and if they were wanting to expand it would waste more time and resources researching and…

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