Danger of Oversegmenting a Market
Not what you're looking for?
Segmentation is the process of breaking a population down into smaller groups and marketing to it. Is it possible for a small business to oversegment its market? How might that be dangerous?
Purchase this Solution
Solution Summary
Market segmentation is a useful marketing strategy when companies sell their products or services to large heterogeneous markets. However, over segmenting markets can cause some problems and may not produce the desirable results. Therefore, such decisions need to be evaluated carefully specially by small businesses.
Solution Preview
It is important to first understand the purpose of market segmentation. When a business feels that it is not possible to effectively serve the needs of a market through undifferentiated marketing, that is, offering a single product or service to the total market, then it is necessary to consider the option of differentiated marketing where you need to offer different products for different customer groups. So it is important to do a careful analysis of the market to find out if there is a real need of differentiated marketing and market segmentation is ...
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Motivation
This tests some key elements of major motivation theories.