market segmentation

• Market segmentation = a process companies use to break their potential customers into different sections.
• advantages of market segmentation:

  • businesses can focus on their marketing efforts more efficiently
  • develop products tailored to specific customer segments
  • Recognizes that consumers are not all identical
  • Less expensive and wasteful than marketing products at wide market segments
  • May increase loyalty
• Disadvantages of customer segmentation:

  • can have lack of information and data
  • difficult in measuring and predicting consumer behaviour
  • hard to reach customer segments once identified
  • Not everyone within a segment will behave in the same way
  • Segmentation requires more detailed  market researchwhich can prove costly