Explain the process of market segmentation. Why is it thought Essay - 1

Explain the process of market segmentation. Why is it thought necessary for a firm to target specific segments of the market - Essay Example In this era, there is no such thing as a standardized product which is suitable for use by all people. Hence, no firm seeks to target the whole market at large and it is highly difficult to target a large potential market with the same product and the same marketing strategies. No products except maybe staple foods such as fruits, vegetables, bread, butter, and other important dietary supplements are aimed at targeting the whole population of consumers and are standardized products. All other products or services are differentiated and conformed to the needs and wants of various target groups (Greenberg and McDonald, 1989, pp. 95-96). Differentiation refers to adapting the characteristics and marketing of your product/service to fulfill the needs and wants of a particular target market. In order to select the target market for product/ service, a firm must indulge in the process of market segmentation (Greenberg and Mcdonald, 1989, pp. 110-112). Market segmentation is the process of dividing the larger potential market into smaller groups according to similar characteristics. The segmentation can be upon the basis of several variables depending upon the product/service the business is offering and how it plans to target its potential audience. Several advantages of market segmentation enable a business to perform more efficiently and make the business’s selling/ marketing strategies more effective. The first advantage of market segmentation is that segmenting the potential market allows the business to be more focused upon a certain group of customers. This prevents duplication of resources and enables the business to directly target the segment that is more likely to be interested in their product/service offering rather than wasting time and resources upon targeting a massive market that may not be interested in the product/service at all (Yankelovich, 1964, pg. 75-77). Market segmentation allows the business to see the