Significance Of Market Segmentation

AUTHOR’S PREFACE The author has noticed that all organizations whether public or private, manufacturing or service, large or small have a need for marketing. As a means for serving the needs of customers, marketing forms the cornerstone discipline of most successful Companies and Governments not only in developed countries but also in developing countries. Market segmentation is the process of dividing a market of potential customers into groups or segments, based on different characteristics. Therefore, it is good to understand that market segmentation is very important because it allows a business to precisely reach their consumers with specific needs and wants and this will again tremendously benefit the company because they will be able to use their corporate resources more effectively and at the same time be able to make better strategic marketing decisions. The very fact that buyers differ in their taste and preferences or are scattered worldwide makes market segmentation almost inevitable. Thus, market segmentation must be employed if a business wants to be successful. As rightly observed by an advertisement agency, there will be no market for products that people like little but only for products that people like a lot. Furthermore, most of these kinds of people are unevenly spread in various locations and this necessitates the need for market segmentation. The book determined the extent to which application of market segmentation as a tool by organizations assists them in achieving their objective goals. The book in addition identifies market segmentation as a tool for organizational growth and survival. The very fact that buyers differ in their taste or preferences and are scattered worldwide, makes market segmentation almost inevitable and a best strategic marketing decision that must be employed. Therefore, the author sees market segmentation as very important in identifying the various needs and differences of the customers by classifying them into groups and then tailoring the product to each group. In fact, this is what market segmentation does and this paves way to making the optimum strategic marketing decision. Market segmentation is also in conformity with the philosophy of market concept, which is employed by most firms today as their guiding philosophy. I recommend this thesis to business/financial executives, leaders, corporate bodies, governments, tertiary institutions, researchers and all libraries for reference.