Segmenting the entire market which has dissimilar features into groups of similar features is known as market segmentation.
Benefits of Market segmentation
Since the entire market is analysed amuch awareness regarding the market can be gained
Ability of recognizing the appropriate and periodic market
Segmented market can be specifically segmented further
Ability of utilizing the limited resource available in the firm efficiently and effectively
The firm is able to minimize the market risk
Ability to launch marketing programs more successfully
Factors of Market segmentation
Geographical factors
Demographical factors
Psychological factors
Behavioral factors
Requirements for an effective Market segmentation
Measurability
Subtantiality
Accessibility
Differentiability
Actionability
Targeted Market
The market segmentation that may be able to work for the betterment of the entity in an attractive and lucrative manner out of the recognized customers with similarities from the multicharactered customers in the entire market is known as the target market.
Product
Any thing presented to the market with the purpose of fulfilling the needs and wants is known as a Product.
Products can be classified as goods, services and ideas.
When compared the goods and the services, following features are obvious in services:
