Effective Marketing Business Plan

Marketing segmentation is the identification of market shares that are different from each other. The segmentation enables the company to better meet the needs of your prospects.

The need for marketing segmentation

The marketing concept requires understanding customers and satisfying their needs better than the competition. However, customers have different needs, and is rarely possible to satisfy all customers, treating everyone equally.

Mass about marketing segmentation

concerns the treatment of the market as a homogenous group and offering the same marketing mix to all customers. Mass marketing allows economies of scale through mass production, mass distribution and mass communication. The drawback of mass marketing is that the needs and preferences are different and the same offer is unlikely to be seen as optimal by all customers. If companies ignore the needs of different customers, another company is likely to enter the market with a product that serves a specific group, and companies lose their business incumbant.

Marketing Segmentation are actions on the other hand recognizes the diversity of customers and not try to please everyone with the same treatment. The first step in the target market is to identify the different market segments and needs.

Requirements of market segments

In addition to having different needs, segments of practice to be evaluated against the following criteria:

• Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified.

• Accessible: the segments should be accessible through the communication and distribution channels.

• Substantial: the segments should be large enough to justify the resources required for that purpose.

• Special needs: to justify the individual offerings, the segments must respond differently to different marketing mixes.

• Durable: the segments should be relatively stable to minimize the cost of frequent changes.

A good marketing segmentation will lead to industry members that are internally homogeneous and externally heterogeneous, which is as similar as possible in the segment, and as different as possible between the segments.