Market segmentation has assumed an important role as products and brands continue to increase quickly. Market segmentation enables an organization to better satisfy the needs of its potential customers. The objective of market segmentation is realization of maximum gains by better utilization of segments.
There are several important reasons for segmenting markets carefully:
For better understanding of customer needs
The needs and taste of customer differ from customer to customer because of age and other reasons. Creation of separate offers for each and every segment/class provides customers with a better solution
Better opportunities for growth
Market segmentation is able to accelerate sales. Customers are encouraged to "trade-up" after being introduced to a particular product with an introductory, lower-priced product.
Satisfying customers needs
By marketing products that appeal to customers at different life stages, a business can retain customers who might otherwise switch to competing products and brands by satisfying their needs.
Improved profit for organization
The disposable incomes of customers are different therefore customers react differently to price. Market segmentation enables organizations to increase the average price and subsequently boost their profits.
Lucintel can help segment a client’s market and so enable an effective marketing strategy, leading to competitive advantage in the marketplace. We show our clients how to:
Differentiate products or services in line with their customers
Improve their competitive positioning
Shape their product offering and pricing strategy to fit the markets with most potential
Provide focus on their customers so they can:
Concentrate on providing profitable products or services
Target marketing and selling efforts