What is market segmentation in business?

[Mika]

You walk past KFC outlet, from the glass window you see tables occupied. After a while, you reach a busy marketplace and see people rushing to buy from the food cart. The KFC and the food cart, both are doing business, both might be profiting, but what is the basic difference between these two businesses?

Those who are eating at KFC may never buy from a food cart and those who are buying from a food cart may not afford to eat at KFC. These two groups of people come from two different economic backgrounds.

When a business knows their customers and use the marketing methods that reach their target customers, they can succeed. Finding the target customers and reaching out to the target customers is called market segmentation.

Market segmentation is very important to become successful in your business venture.

 

[sincerem]

If the person who is taking a loan to start up a business is confident enough to make best of the loan and produce end product, which is making profit. I don't see any hindrance that will make such person not to meet up on the loan repayment deadline. Unless the person isn't sure of the kind of business that will become a boom after taking a loan. Then it is advisable not to take a loan during the start up if the person can't meet up.

 

[Alexandoy]

I guess this topic is directly related to the market base. In the example of the food cart it has a similar but different customer base than the fast food outlet. My example is myself that I patronize the fast food outlet and more likely I will not buy from the food cart. They can both exist because they are not direct competitors with each other.

 

[Setho]

Market segmentation is a very important part of a business which involves dividing your customers based on a particular characteristic. Someone who produces fruit juice my desire to make searched fruit juice for a more poorer population and then bottled fruit juice or canned fruit juice for people who have more purchasing power.

 

[Wisdom01]

Market segmentation is really important ,since when the customer visit the kyc to purchase food , he might see other things to purchase too apart from food ,like beverages and others ,also the convenience and comfort would make the person choose buying from the kyc store than the other I think too

 

[Mika]

Market segmentation implies that you are perfectly aware of who your customers are and how you can reach your customers. Knowing your customers means you know who is going to buy your products and services and where your businesses should be located (provided it is an offline business). Market segmentation is must to drive sales.

 

[Jasmine]

If you have a business and if you are trying to sell products and services, you need to do market research, market research means doing market segmentation and doing competitor analysis. Market segmentation is also a way to build a marketing plan for your business. Without market segmentation you cannot build marketing plan.

 

[Mika]

Without market segmentation you cannot build marketing plan.

That's correct. In order to generate sales, you need to market your business and product. In order to market your business and products, you need a marketing plan. You need to research the market to develop a marketing plan. Marketing segmentation means understanding your market to identify your customers and generate more sales.

 

[Jasmine]

Creating a marketing requires brain storming. Brain storming cannot be done alone, you need a team of like minded people to brain storm. Therefore, setting up a team is the the first step of creating a marketing plan. Once you have a team you can start building marketing plan for your ad cmpaign

 

[Mika]

I agree that creating a marketing plan requires brainstorming, when a group brainstorms, it is able to come up with the idea that might actually work (because a lot of people have deliberated on that idea). The marketing plan should not abandon the product, in fact, the product determines the exact market plan. For example, if you plan to sell to the folks in the rural area, digital marketing might not help much as the internet might be inaccessible there. Radio could be a better marketing platform in rural areas. Radio advertisement can also be good to attract people who travel by cars.

 

[Mandy96]

If I understand correctly, I think what the poster might be trying to say is what we call “packaging” in my country which is Nigeria, well it is very important and helpful to apply this method in anything one do in life, most especially in business, this will give you the opportunity to have more customers and the bigger ones that will be able to afford a big price tag you put on your product. This makes a brand go very far, in the sense that the big firms will also be willing to do a business deal with yours and make you achieve even more.

 

[Mika]

Packaging is different. Market segmentation is different. market segmentation means learning about your customers and market so that you can send your products to the right people who might end up buying the products. By doing market segmentation, you are able to sell the products to the right people. You cannot sell a game to someone who does not play games, you can sell games only to the people who are gamers.