The major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. How does market segmentation help marketers? Think of three products and/or services that you see in advertisements (television, print, etc). What are the products and/or service, and who do you think they are targeting?
Mass marketing is that it creates the largest potential market by enabling the manufacturer to undertake mass production which results in the lowest cost of production, keep the lowest prices but higher margin.
Segmentation helps the marketing man spot the segment not fully satisfied and why and making a business success by satisfying it. This way not only the company but also the customers are benefitted. In the gradual course of time the identified segment may reach higher level of sophistication and perfection/specialization leading the manufacturer as well as customer selects each other for mutual benefit and satisfaction.
The points that should be kept in mind while conducting the segmentation are that they must be relevant, accessible, available and measurable. The company may be able to capture the market, it must be big enough to generate sufficient returns, may not be already clustered with several competitors.
How does market segmentation help marketers?
To make my point home I wish to make you clear the difference between 1) Mass Marketing and 2) Segment Marketing.
In the former seller is in the business of mass production, distribution, and promotion of one product for all buyers.
The argument in favor of this type of marketing is that it creates the largest potential market by enabling the manufacturer to undertake mass production which results in the lowest cost of production, keep the lowest prices but higher margin.
In the latter case segmentation helps the company to identify the different buyers ...
Marketing these days has become very completed. Customers are now more discerning and much choosier quantity, quality and price wise. They are ever in the look out for discount sales, premium and general market. Introduction of a completely new item requires advertisement through different mediums cost of which must kept at the lowest to attract the prospective customers. Customers must be convinced of the utility of the product and reasonable price, availability of after sales service and spare parts.
These things make segmentation of market essential after proper analysis.