Answer to Question #34207 in Other Management for silvester mbazima
Explain why a firm might choose not to engage in market segmentation after conducting appropriate research.
Market segmentation is the process of identifying key groups or segments within the general market that share specific characteristics and consumer habits. Once the market is broken into segments, companies can develop advertising programs for each segment, focus advertising on one or two segments or niches, or develop new products to appeal to one or more of the segments. Companies often favor this method of marketing to the one-size-fits-all mass marketing approach, because it allows them to target specific groups that might not be reached by mass marketing programs.To identify segments, marketers examine consumers' interests, tastes, preferences, and socioeconomic characteristics in order to determine their patterns of consumption and how they will respond to various marketing strategies. The primary information marketers seek is why consumers purchase specific products or services but not others. Catalog retailers and direct-marketing firms make up some of the key users of market segmentation, although many other kinds of companies and organizations use this technique.Market segmentation—also called micromarketing—simplifies the marketing process, because it allows marketers to concentrate their advertising on groups of consumers who share significant characteristics. Marketers, therefore, can produce specific advertising geared towards specific segments; otherwise marketers have to create very general advertising and hope that it will appeal to a diverse audience. Market segmentation also can be more efficient than traditional marketing techniques such as product differentiation. Because marketers focus their advertising on specific segments, they can expect better results from each segment than they could expect from these consumer groups if treated as a whole.
No comments. Be first!