Question

Some critics of marketing have suggested that market segmentation and target marketing lead to an unnecessary proliferation of product choices that wastes valuable resources. These critics suggest that if marketers didn't create so many different product choices, there would be more resources to feed the hungry and house the homeless and provide for the needs of people around the globe. Are the results of segmentation and target marketing harmful or beneficial to society as a whole? Should firms be concerned about these criticisms? Why or why not?

Answer 1

Segmentation and target marketing cannot be criticized as unethical. These marketing strategies were formulated for companies to reach out their customers effectively for fair deal.

Not all services or products suits to every customer. Hence approaching wrong customers will cost company and also gets negative word of mouth from non customers in market. Hence segmenting the market and then targeting right customers are key to business.

However, there are companies who use these strategies in unethical way to deceive, manipulating and using customers ignorance to achieve success in their buisness, which need to be condemned. These unethical practices followed by companies creates bad impression about these maketing strategies. For ex. Companies selling hair oils, which helps to regrown hair on bald head. Selling fairness cream in rural areas with promotion as fairness guarantee in 6 weeks.. Old becomes young skin in three weeks. Getting girlfriend through perfume These are some examples of exploitation through segment marketing.

If companies follow ethics in their business then all the strategies adopted by them will also be ethical.