Question

How does market segmentation help customers and marketers? Explain briefly

Answer 1

Answer : Segmentation refers to dividing the entire market into groups on the basis of some criteria like age, geographical location and others .

Audiences can also be segmented on the basis of their interests .

Benefit of Market segmentation to Marketers:

Instead of targeting the entire market , marketers can now target specific segments and can show them customized advertisements which can lead to increased conversions for them .

Benefit of Market segmentation to Customers:

Prospective customers can now have choices on the basis of their segment. For example, a person who is in the segment labeled as “Interested in Computers” will be receiving advertisements promoting products or services related to Computers and so, he or she will have better choice for decision making in case of purchase .

However, If an advertisement for Computers is shown to everyone in general, they may get angry or irritated as to why they are being targeted .

So, Market Segmentation helps consumers have a better experience in terms of advertisements .