Showing posts with the label process of segmentation

The Process of Market Segmentation

As most companies cannot compete in an entire market, they usually break down it down into smaller markets. This process of market segmentation affords the opportunity to focus selling products in one, or a few, defined areas. It helps to create focus and effective use of marketing resources to maximize return on investment. Effectiveness is seen as dollars spent and dollars earned.  As companies gain resources and knowledge, they begin to use market research to develop complex and effective marketing strategies. The process of evaluating a market segment helps in developing strategies that further create efficiency in target marketing ( Kutkut, 2012). Target marketing is the chosen focal point of the products/services, advertisements, and related efforts.   As the skill level of managers rises, so does the success of reaching and influencing the target market.  There are generally four levels of market segmentation that include (Finch, 2012): Mass Marketing: The firm