Importance of Market Segmentation Effective market segmentation is a fundamental aspect that helps build successful marketing initiatives. It is defined as the process of segmenting customers into homogenous groups based on their preferences, thus, enabling each segment to be addressed by specific marketing strategies. Furthermore, considering the competitiveness in today’s market, businesses will not be […]
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Importance of Market Segmentation
Effective market segmentation is a fundamental aspect that helps build successful marketing initiatives. It is defined as the process of segmenting customers into homogenous groups based on their preferences, thus, enabling each segment to be addressed by specific marketing strategies. Furthermore, considering the competitiveness in today’s market, businesses will not be able to withstand the competition if their marketing strategies are aimed at targeting the entire audience as a whole.
The importance of market segmentation is that it empowers businesses with the ability to reach out to end users with specific requirements. However, this proves to be beneficial in the long run as employing different types of market segmentation strategies enable the effective use of corporate resources and strategic decision making.
Types of Market Segmentation
While analyzing the importance of market segmentation we are more disposed toward behaviors, lifestyles, psychographics, and business values. But in reality, it is much more than that, market segmentation is a broad concept that includes different types of market segmentation methods, which apply to different industrial segments. Lets review a few commonly used 
types of market segmentation:
- Distribution segmentation: Different distribution channels exist in different markets, this method is the commonly adopted process among the different types of market segmentation methods as it enables firms to reach each market using a different channel.
- Geographic segmentation: Market players often tend to focus on particular regions to maximize their profit margins. Though regional differences among consumers is a major differentiating factor, it often proves to be a fundamental aspect that supports geographic specialization.
- Price segmentation: Price segmentation is a widely adopted market segmentation method, where markets are segmented on the basis of different price dimensions.
Client’s Background:
The client is a market leader in the chemical industry in India, with several distributions channels spread globally.
Continue reading to know about the scope of this market segmentation engagement or request a free proposal
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