Market Segmentation

1. Introduction Organizations that sell to consumer and business markets recognize that they cannot appeal to all buyers in those markets or at least not to all buyers in the same way. Buyers are too numerous, too widely scattered and too varied in their needs and buying practices. Companies vary widely in their abilities to serve different segments of the market. Rather than trying to compete in an entire market, sometimes against superior competitors, each company must identify the parts of the market that it can serve best. Segmentation is thus a compromise between the rash assumption that all people are the same and the uneconomic assumption that each person needs a dedicated marketing effort. Within this essay, it is going to present the main considerations of the market segmentation, as well as the influence of consumer behaviour. 2. Concepts of the market segmentation Markets consist of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, loc...