In market segmentation we divide the whole market into small segments or parts. It is done because of ease for both seller and buyer. Market segmentation is made by seller who will sell his products to target customers. Segments will help him to access them easily and efficiently.
For example, we (organization, say ‘PakMobiles’) make five segments of Pakistan, Punjab, Sindh, KPK, Balochistan and Islamabad. Suppose we want to sell our product that is a vedio camera mobile set (Rs.65,900). Now we want to sell our product in five segments separately then we will have to further divide five segments into smaller segments that are markets like in Islamabad we may make further segments for example; Jinnah Super Market, Abpara Market, Melody and I-9 Market.Here you will find that Jinnah-Super is expensive than abpara and Melody and I-9 Market is cheaper than all. Here we shall supply our product to majorly to Jinnah-Super or abpara, Melody instead of I-9 Market because we know that our product is very costly and will not be sold easily in small market. Further we had to make segments further into Islamabad to properly allocate our resources for boosting up our product. A one more segmentation is Demographic Segmentation in which we study about people different attributes like; Gender, infant/youth, age, birth rate, education level, income, low/Middle/High/Business class etc. Here we know that major Pakistan having low class and also students can’t afford this mobile instead of Karachi/Lahore/Islamabad where business or high class exist, so we will have to send our product to that cities. One more is physiological segmentation, in poor countries people having more wants than ability to purchase them. For example a person belongs to poor class or from middle class shall have desire to buy latest model car instead of it disadvantages but just for show. So marketer will always keep in mind physiology of the society when making segmentation of the system.
Segmentation as we explained up can be defined properly as the dividing of the whole market into segments that have different types of customers with different purchasing power and having different taste and approaches.
But in theory we saw it is very easy but in real life it is very challenging for marketer to make segments of the area and then further divide it into small pieces and where there are rivals in the market then it will be too much complex for a company to make segmentation. On the other hand those organizations that do segmentation can cross every types of barriers because market segmentation is the planning for bright future of the business and if the bases of plan are laid down properly then the other goals will be achieve in accordance with standards.
hmm. gud.
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