Question

What are the different levels of market segmentation? And briefly describe product specialization and market specialization.

Answer 1

Answer:

Market segmentation means dividing the target market into categories to efficiently implement strategies to target them.

Levels of market segmentation:

1. Mass marketing: Here the seller offers the same products to the target market that might have different needs. Mass production, distribution, and distribution occur. It costs less and the profit margin is higher due to its scale. But there is high competition present. Example- convenience goods such as detergent, toothpaste, etc

2. Segment marketing: Here the market is divided into different segments based on the consumer’s behavior, purchasing power, demographic factors, etc. Example: Car manufacturers offer premium cars, luxurious cars, and high-performance cars as per buyers preference.

3. Niche marketing: Here sellers target a small number of buyers who want specific products or services and require specialized people to perform it. Example: Sports equipment, customized cars, etc.

4. Local marketing: Here the buyers belong to the local area and the seller provides goods or services specific local region. Example: Local vegetables, fruits, etc The prices are high and competition is less.

5. Individual marketing: Here the buyer is provided services individually. These are usually business to business transactions. These are highly customized service providing.

Product specialization

Here the market deals with different products in the same product line. They target different market segments with a single product or through its variation. He advantage is that it can specialization in that particular product line. Example: Garnier offers different cosmetics for all types of segments men or women. The disadvantage of this specialization is that if the product matures the market would end.

Market specialization

Here the marketer deals with only one market. Their main focus is to meet the needs of that particular customer group. The main advantage of it is that it may create a monopolistic situation. They keep an eye on the needs of the selected segment and provided it to them. The disadvantage of this is that if the segment weakens the marketer will have nowhere to go.