A set-up where two or more parties (also called buyers and sellers) are engaged in transaction of goods and services in exchange of money is called a market.
At the market place the sellers sell their goods to the consumers (buyers) in exchange of money.
Let us go through the following examples:
Nokia offers wide range of handsets for both males as well as females.
The handset for females would be sleeker and more colourful as compared to sturdy handsets for males. Males generally do not prefer stylish handsets.
The organizations cant have similar products for all individuals.
Perfumes and deodorants for females have a sweet fragrance whereas perfumes for males have a strong fragrance.
A marketer cant have similar strategies for all consumers.
The process of creating small segments comprising of like minded individuals within a broad market refers to market segmentation. Market segmentation helps in the division of market into small segments including individuals who show inclination towards identical brands and have similar interests, attitudes and perception.
Not all individuals have similar needs. A male and a female would have varied interests and liking towards different products. A kid would not require something which an adult needs. A school kid would have a different requirement than an office goer. Market Segmentation helps the marketers to bring together individuals with similar choices and interests on a common platform.
An individual with low income would obviously prefer a Nano or Alto instead of Mercedes or BMW.
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