Sie sind auf Seite 1von 3

There are several Advantages of Marklet segmentation.

1) Focus of the Company Segmentation is an effective method to increase the


focus of a firm on market segments. If you have better focus, obviously you will have
better returns. Numerous automobile companies have started focusing on small car
segments. This is nothing else but a company changing its focus for better returns.
Thus companies base their strategy completely on a new segment which increases its
focus and profitability.
2) Increase in competitiveness Naturally, once your focus increases, your
competitiveness in that market segment will increase. If you are focusing on
youngsters, your brand recall and equity with youngsters will be very high. our
market share might increase and the chances of a new competitor entering might be
low. The brand loyalty will definitely increase. Thus market segmentation also
increases competitiveness of a firm from a holistic view.
3) Market expansion !eographic segmentation is one type of segmentation
where e"pansion is immediately possible. If you have your market strategy on the
basis of grography, then once you are catering to a particular territory, you can
immediately e"pand to a nearby territory. In the same way, if you are targeting
customers based on their demography #$" reebok targets fitness enthusiasts% then
you can e"pand in similar products #$" reebok e"panding with its fitness range of
clothes and accessories%. Segmentation plays a crucial role in e"pansion. ou cannot
e"pand in a territory when you have no idea of which segment of customers you will
be meeting.
) Customer retention &y using segmentation, 'ustomer retention can be
encouraged through the life cycle of a customer. The best e"ample of this is the
(utomobile and the (irlines segment. ou will find ma)or e"ample of customer life
cycle segmentation in the *ospitality segment whether they be hotels , airlines, or
hospitals. In India, Titan is an e"ample of products which are planned through the
life cycle of a customer. +rom fast track to Sonata and the high range watches, Titan
has them by price segment as well as life cycle segment. Thus a watch is available for
any customer who enters a Titan showroom, whatever be his age.
!) "ave #etter communication ,ne of the factors of marketing mi" which is
absolutely dependent on ST- is -romotions or communications. The
communications of a company needs to be spot on for its T(.!$T market. Thus if
you need a target market, you need segmentation. 'ommunication cannot be
possible without knowing your target market. Imagine if you had to make someone
across a curtain understand what is politics. ou would go on about ruling parties,
states, countries and politicians. (nd when the curtain is taken aside, you find that
the person across the curtain is a / year old kid. Is there any use talking to him about
politics0 This shows why communication needs segmentation. If you dont know your
market segment, what is their demography, what is their psychology, where they are
from, then how can you form a communication message.
$) Increases profita#ility Segmentation increases competitiveness, brand
recall, brand equity, customer retention, communications. Thus if it is affecting so
many factors of your business, then definitely it affects the profitability of the firm.
1o you ever see people negotiating in a Nike, !ucci or &23 showrooms0 ou wont.
,ne of the 4S-5s of these brand is their segmentation. They are in fact targeting
segments which have no need of bargaining or negotiation. Thus their profitability is
high.
imitations of Market segmentation
%egmentation also has its limitations as it needs to #e implemented in
the proper manner& As segmentation is one of the most important
process in the marketing plan or for your #usiness' you need to kno( the
limitations of segmentation and (hat pitfalls lie ahead if you go (rong
(ith your target market segment&
1) %egments are too small ) If the chosen segment is too small then you
(ill not have the proper turnover (hich in turn (ill affect the total
margins and the via#ility of the #usiness&
2) Consumers are misinterpreted ) *he right product to the (rong
customers& +hat if your market research says that your customers (ant
a ne( soap and you come out (ith a ne( facial cream& *he concept is
same' cleanliness& ,ut the concept is completely different&
3) Costing is not taken into consideration ) *argeting a segment is ok
#ut you also need to kno( ho( much you (ill have to spend to target a
particular segment& If it is a %ec A segment and you do not have the
#udget to #e present in the places the the %ec A customer visits' then your
segmentation strategy is a failure&
) *here are too many #rands ) Along (ith segmentation' you also need
to check out the competition offered in the same segment from other
products& -etting into a segment already saturated (ill mean higher
costs and lesser profit margins&
!) Consumer are confused ) If the consumer himself doesn.t kno(
(hether he (ill #e interested in a particular product or not' than that.s a
sign that you need to get out of that segment / product&
$) 0roduct is completely ne( ) If a product is completely ne( than there
is no market research to #ase your segmentation on& 1ou need to market
it to the masses and as acceptance increases' only then (ill you #e a#le to
focus on one particular segment&

Das könnte Ihnen auch gefallen