Discuss the importance of Market Segmentation in Marketing Decisions.
The importance of Market Segmentation in Marketing Decisions as under:
Adjustment of product and marketing appeals: Market segmentation presents an opportunity to understand the nature of the market. The seller can adjust his trust to attract the maximum number of customers by various publicity medium and appeals.
Better position to spot marketing opportunities: The producer can make a fair estimate of the volume of his sale and the possibilities of furthering his sales. In the regions where response of the customers is poor the strategy of approach can be readjusted accordingly to push the sale.
Allocation of marketing budget: It is on the basis of market segmentation that marketing budget is adjusted for a particular region or locality. In the place where the sales are limited, it is no use allocating a huge budget there.
Making the competition effectively: It helps the producer to face the competition of his rivals effectively. The producer can adopt different strategies for different markets taking into account the rivals strategies.
Effective marketing programme: It also helps the producer to adopt an effective marketing programme and serve the consumer better at comparatively low cost. Different marketing programs can be attached for different segments.
Evolution of Marketing Activities: Thus market segmentation helps the manufacturer to find out and compare the marketing potentialities of the products. It helps to adjust production and using his resources in the most profitable manner. As soon as the product becomes obsolete, the product line could be diversified or discontinued.