Question

Stoneman suggests that channel strategy is not normally associated with segmentation. Do you agree? Provide examples where segmentation is integrated into a channel strategy? Is segmentation effective?

Answer 1

“Stoneman suggests that channel strategy is not normally associated with segmentation”

I do not agree with the statement as segmentation is an integral part of channel strategy and will market the product to the right consumer saving time, effort and money.

In simple words Channel strategy is the need to identify the correct customer according to company’s objectives and policies to maximize returns.

First what is Market segmentation? It is the process of dividing/subdividing a market of potential customers into groups, or segments, based on different characteristics.

For example:

1. Demographics
2. Geography
3. Religion
4. Taste
5. Needs etc

The channel strategy should be based on the objectives and goals identified and segmented by the organization goals. Channel strategy can only be defined by target segmentation.

Example:

Product Sanitary Pads:

Target group:

Gender:Female

Age:13-45 years

Class: Middle Class –Rich

Strategy will make it accessible to above client group which is clearly segmented as female, specific age group and who can afford the product.

It is effective:

1. To decide the marketing strategy
2. Target the right consumer group into clear subgroups
3. It is measurable
4. It creates a niche market