For a company to be successful it is not about developing a good product, it’s all about delivering the product to the customers. The most common term in marketing is ‘Marketing Mix’. the marketing mix is also called as 4P’s/ which are Product, Place, Price, and Promotion. This article covers the Place.
We all know that the market is different and vary in needs, motives, and characteristics of buying behavior. The market is very heterogeneous that it is important to deliver the product to the right audience.
As most of the markets are heterogeneous, the marketers need to make informed decisions about what are the needs and how to serve the needs.
So it is important to plan an appropriate marketing mix and deliver it to the customers appropriately.
The process of dividing the markets into various groups based upon the motives and buying behavior is called ad segmentation.
Benefits of Segmentation :
Segmentation is important for marketers because it helps them to divide the target market effectively. This helps the marketer to distinguish one customer group to another and plan the strategies effectively.
Segmentation helps marketers to address the needs of consumers effectively. By segmenting the market the marketer can easily understand the consumers and as the target group becomes homogeneous, the marketing strategies can be implemented more effectively.
The marketing resources are very limited for every organization. By segmenting the market the firm would be able to deliver the product or service to the people which meet the firm’s needs.
By segmenting the market the marketer would be able to understand what are the requirements of less targeted markets and find out unique opportunities to deliver that particular segment.
Markets are broadly divided based upon four factors. Here are the 4 factors:
- Geographic segmentation: Customers are divided upon the region where they love. Usually, people are divided based upon the country, (India, China), region (north, north-east), areas
within a region (state, city, town, and neighborhood).
- Demographic Segmentation: Demographic segmentation divided the market based upon the variables such as age, gender, sex, family size, family lifecycle.
- Psychographic Segmentation: In this type of segmentation physiological makeup of customers is unearthed to understand the buying decision of the customer.
- Behavioral Segmentation: In this type of segmentation the behavior of the customer is taken into consideration. Marketers understand the customer, whose needs and wants are satisfied by the benefits of the product.