What is International Market Segmentation? Discuss its importance.
International Market Segmentation.
International market segmentation refers to the process of dividing its total international market into one or more parts (segments or sub-markets) each of which tends to be homogeneous in all significant aspects. In other words, international market segmentation is the process of identifying groups or set of potential customers at international level who exhibit similar buying behaviour. Through international market segmentation, similarities and differences among potential buyers in foreign markets can be identified and grouped.
Objectives of Marketing Segmentation.
The purpose of segmentation is to determine differences among buyers which may be consequential in choosing away them or marketing to them. Following are the objectives of market segmentation:
To spot and to compare market opportunities by examining the needs of each segment and how far these needs are being tried to be satisfied.
To use his knowledge of the marketing response differences of various customers, he may decide how much marketing funds may be allocated to different segments.
To make suitable adjustments of his product’s and marketing appeals. Instead of one marketing programme aimed at to draw in all potential buyers the sellers can create separate marketing programme and as to meet the needs of different buyers.
Market segmentation plays an important role in marketing management. Market segmentation offers following advantages to producers and sellers:
- Market segmentation minimizes aggregation of risk.
- Market segmentation helps know company strengths and opportunities.
- Market segmentation provides opportunities to expand market.
- Market segmentation creates innovations.
- Market segmentation creates gains to consumer.