Explain the scope,need and benefit of market segmentation

Market was defined as the place or areas in which buyers and sellers functions. Marketing is a exchange process. The products are matched with markets.A marketers and products are the twin factors on which all marketing process are based nothing happen in our economy, unless and until some body sales nothing.

Hence selling is very essential and for selling markets is essential. Market is the aggregate demands for the potential buyers of commodity or services.

                      
The process of subdividing market is called as market segmentation.The term segmentation is the use to sub-divide the market or customers of the product in order to capture more sale effectively and efficiently. Even for product line having a similar needs of different need of market segments.    

"Market segmentation is the subdividing of a market into distinct subsets of customers, he any subset may conceivably be selected as a market target to be reached with a distinct marketing mix''.      

   
 SCOPE OF MARKET SEGMENTATION-

➤ Measurability- Demographic and socio-economic characteristic are objective and measurable but personality, life style and psychological factors governing buyer behavior such as motivation ,perception and attitude are subjective and non measurable attributes. Hence we want to identify members the segments on the basis of some common characteristics or behavior pattern.

➤ Accessibility -Even if the segment is identified, it should  be within our reach through suitable means of communication and distribution. Our segments indicate that buyers will buy easily as they have low self-esteem. If we are unable to communicate effectively with our prospective buyers,our efforts of promotion will be worthless.

➤ Market Responsiveness-  The identified segment must respond favorably to our marketing efforts .Here customers demands, their buying motives are important, If customers interested in quality and services and are ready to pay higher price than segmented market must give respond to our marketing efforts.

➤ Effective Demand- The segment may respond favorably. But it must have sufficient buying power .Number of buyers may be small but their buying power must be adequate.Needs plus purchasing power create effective demand. A segment must possess effective demands.

➤ Adequate potential- Marketers should develop segmentation strategies only for subtantial segments . Ability to measure the intensity of need and strength of purchasing power supporting the need can indicated potential of a segment.

       

 NEED OF MARKET SEGMENTATION -
         

Need of market segmentations are explained as below- 

 

➤  The adoption ''of mass production''where automatically segmented.

➤  Each product or services was tailored to the needs of the buyer had ordered it.

➤ The aim of mass production was to standardise products in order to achieve greater production efficiency and lower product cost.

➤ This would lead to the lowest costs and create the largest potential market.

➤  It is said that today Never Follow the Crowd.

➤ The economic theory of pure competition assumes that all buyers are alike and consumer behavior is undimensional.

➤ Marketers recognize the important of heterogeneous demand.They are interested in sub -dividing or segmenting the market.

➤ Each segment can be a group of people with similar or homogeneous  demand and enterprise can offer tailor-made marketing mix for each market or subdivision.

➤ A marketing  segment is a meaningful buyer group having similar wants.Segmentation is a customer- oriented marketing strategy.

➤ Varied and complex buyer behavior is the root cause of market segmentation.

       

 BENEFITS OF MARKET SEGMENTATION - 
         
Market segmentation reflects-reality in marketing.Segmentation ensure-higher customer -satisfaction and improves effectiveness of the marketing programmes.

Benefits of market segmentations are explained as below.-      

 ➤ Marketers are in a better position to locate and compare marketing opportunities

➤ When customer needs are fully understood ,marketers can effectively formulate implement       marketing programmers

➤ Competitive  strengths and weaknesses can be assessed effectively and marketers can avoid fierce competition  and use resources more profitably by catering ''Customer demand" which is not being met by rivals.

➤ It leads to more effective utilization of marketing resources .  

Market segmentation helps matching of market opportunities to corporate resources and enables the enterprise to give successful competition in the market.

OTHER IMPORTANT BENEFITS OF MARKET SEGMENTATION -
                                                                             
    are given as below.

➤ Increase in sales values.

           

➤ sound marketing programmes.

➤ Increase in market opportunities.

➤ Better utilization of market resources.

➤ Provides various types of information useful in marketing research, product development, evaluation of  facilities of marketing and distribution etc.

Better understanding of consumer needs behavior expectations.