MARKET SEGMENTATION

MARKET SEGMENTATION

Concept of Market : Unless you know the exact market(s) to which your organization wants to cater, your focusing will be wrong and your planning will be faulty and you will fail to develop an appropriate marketing strategy or effort to meet the needs of your target market. To identify the target market let us first define the term `market'. The term market has more than one meaning: 

-          It can be used in respect of the network of institutions like wholesalers and brokers dealing in a product;

-          It can also be used to refer to the nature of demand for the product, as when we speak of the market for soap;

-          The two meanings are related but are physically distinct. Related because without the wholesalers and other institutions, it will be difficult to serve customers (demand).

We are concerned with a `market for' a product. The market for a product relates to the function(s) served by the product. 

THE CONCEPT OF A SEGMENT

Different buyers have different evaluative criteria about what constitutes the right choice for performing the function of a product. As a consequence different offerings will attract different buyers.
 

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MARKETING : MEANING AND CONCEPT

What is the meaning and concept of marketing, marketing mix and marketing strategies ?

In USA, 300 college administrators were asked about the meaning of marketing. As many as 90 per cent said that marketing was selling, advertising and/or public relations. It is no wonder that the Americans are bombarded with TV commercials, newspaper advertising, sales calls, etc.

The American Marketing Association defines marketing as follows:

"Marketing is the performance of business activities that directs the flow of goods and services from producer to consumer or user."

The entrepreneur has first to decide what product he should select. This he can do only if he can identify the needs, which require satisfaction among human beings. Once he has identified the need of a group of human beings (called market segment), he can determine the product, which can help to satisfy that need. This is a part of the modern philosophy of marketing or the marketing concept. 

  

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