We will discuss, the Top 6 Benefits of Market Segmentation.
Market segmentation helps organizations in many ways. Hence, Market segmentation is one of the elements of the success of the company.
Top 6 Benefits of Market Segmentation
The benefits of market segmentation are:
- Identification of Market Opportunities
- Effective use of Market Resources
- Competitive Response
- Market specialization
- Environment Adaptation
- objective Achievement
1. Identification of market resources:
Marketing can assess the needs, size, growth, and profit potential of each segment. It can identify market opportunities in each segment. Hence, it helps organizations to choose the profitable segment.
2. Effective use of marketing resources:
There is no scattering of resources. By using a marketing mix for individual segments, marketing resources can be effectively utilized. Products & promotions can be made, prices can be set and distribution channels can be selected to match the segment’s needs. Therefore, a quick response can be given to changing market needs.
3. Competitive response:
Big organizations face fewer competitors in segments. They can find and analyze the marketing strategies of the competitors. Hence, they can face the competition by changing the marketing mix.
4. Market Specialization
Segmentation helps in the development of micro markets. The company can develop market specialization by serving many needs of one segment. Hence, an organization can easily fulfill the needs and wants of people of segments.
5. Environmental adaptation:
Organizations can effectively monitor environmental changes in segments to identify trends. they can also anticipate and predict changes in segments. Hence, this helps them to adapt their marketing mixes to environmental changes.
6. Objective achievement:
Segmentation helps organizations achieve their objectives effectively and efficiently. Moreover, no organization can survive without achieving its objective.
Hence, these are the benefits of market segmentation.
Other Important Links:
Meaning of Market Segmentation: CLICK HERE
Process of Market Segmentation: CLICK HERE
Target Market: CLICK HERE