MARKET SEGMENTATION DEFINED
According to Philip Kotler, "Market segmentation ,is the sub-dividing of market into homogenous sub-sections of customers, where any sub-section may conceivably be selected as a market target to be reached with a distinct marketing mix."
ADVANTAGES OF MARKET SEGMENTATION
1. Understand potential customers.
2. Pay proper attention to particular areas.
3. Formulate marketing programmes.
4. Select channels of distribution.
5. Understand competition.
6. Use marketing resources efficiently.
7. Advertise the products and launch sales promotion programmes; and
8. Design marketing mix - product, price, place and promotion.
Undifferentiated Marketing (Mass marketing) : A company's attempt to appeal to the whole market with a single basic marketing strategy intended to have a mass appeal.
Differentiated Marketing (Multiple segmentation) : A company's attempt to appeal to two or more well-defined market segments with a marketing strategy tailored to each segment.
Concentrated Marketing : A company's attempt to appeal to one well-defined market segment with one tailor made marketing strategy.
