Definition and Meaning of Market Segmentation
Market segmentation is defined as the subdivision of a market into a homogeneous subset of the customers, where any subset may conceivably be selected as a market target to be reached with a distinct marketing mix.
Marketers have the task of managing markets and demand. A market in this sense will refer to the population of present and potential buyers of a product. This task is by no means easy. For practical purposes at the disposal of organizations to satisfy the needs of customers at profit to the organization.
There are many marketing segments or concepts that marketers can adopt.
To satisfy somebody, you need to know him (not just a nodding acquaintance, markets need to know their customers better), understand their needs/wants, reach them and interact or reason with them.
Market segmentation is a concept in marketing that helps marketers to achieve this, proper market segmentation is not just a necessary condition, it is indeed one of the sufficient conditions.
Definition and Meaning of Market Segmentation
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Market segmentation is defined as the identification and aggregation of individual consumers coming from a heterogeneous population into groups or segments where the members of the group or segment are relatively alike, yet different from other groups.
Market segmentation is also defined as the subdivision of a market into homogeneous subsets of the customers, where any – subset may conceivably be selected as a market target to be reached with a distinct marketing mix.
It also depends on the partitioning of potential customers into groups of differentiated sub-markets. Since no company can operate in every market and satisfy every need, there is a need for market segmentation, a very important marketing technique whereby an organization defines the boundaries of its markets carefully before designing appropriate marketing programs for each target market.
Competition arising from the deregulation of the Nigerian banking sector has made the need for a market segmentation strategy a necessity in the industry. Instead of the banks trying to serve in all segments of the markets, they can for effectiveness and efficiency choose those segments in which they can serve well based on the available resources and competence.
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