Dividing the market into different groups because of the different needs, wants, choice, characteristics and behavior of customer might require different products and marketing mixes.
Why Market Segmentation is important?
Market segmentation makes it feasible for the firm to adapt the marketing mix for specific target markets it will help the firm to better satisfy the need of customer instead of offering the same marketing mix to the different customer with different needs.
Levels of Market Segmentation
It discussed in importance of segmentation that consumers have different needs and good sellers have to satisfy them by designing a separate marketing program for each buyer. That s why market segmentation can be carried out at different levels segments, niches, local areas, individuals and mass marketing.
In simple words seller offer same product for all the buyers with different needs and seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.
A niche is a more closely defined group, it is dividing the segment in to sub segment and it can be divided by identifying the distinct trait of consumer which might need special combination of benefits this sub segments are made for those consumers whose needs and wants are not satisfied.
Local marketing focus on brands and promotion to the needs and wants of local consumer and design marketing program according to the need of local consumer groups cities, neighborhoods and even specific stores.
Individual marketing focus on satisfying the needs and wants of individual customer it’s also know as one-to-one marketing and customized marketing it’s the segmentation level where seller offer customized product to the consumer in other words a product according to the needs and preference of consumer.