The conception of market segmentation relies on the very fact that the markets of commodities aren't homogeneous however they are heterogeneous. Market represents a gaggle of shoppers having common characteristics however two customers are never common their nature, habits, hobbies, financial gain and buying techniques. They don't in their behavior and shopping for selections.
On the premise of those characteristics, customers having similar qualities are classified in segments. Market segments are the groups of customers in keeping with such characteristics as financial gain, age, gender, acquirement and alternative social, demographic, cultural and geographical factors.Whenever a market for a product or service consists of two or more buyers , the market is capable being segmented , that is divided into meaningful buyer groups. The purpose of segmentation is to determine differences among buyers which may be consequential in choosing a way of marketing to them.
• Facilitates proper choice of target market.
• Facilitates tapping of the market and adapting the offers to achieve the target.
• Makes the marketing effort more productive and economic.
• Benefits the customer satisfaction.
• Helps differentiate one customer group from another within a given market.
• Facilitates proper choice of target market.
• Brings benefits not only to the marketer but to the customer as well.
• The marketer can look at the differences among the customer groups and decide appropriate offers for each group.
• Helps achieve specialization required in the product, distribution, promotion and pricing for matching the customer group and developing marketing Offers and appeals that matches the needs of such group.
• Makes the marketing effort more productive and economic.
The research conducts exploratory interviews and focus groups to gain insight into consumer motivations, attitudes, and behavior. Using these findings, the researcher prepares a formal questionnaire to collect data.