The Importance Of Market Segmentation

The rule of market segmentation in achieving the objectives of marketers in increasing sales and achieving profit in today’s market place.
One of the most effective tools in marketing strategy ismarket segmentation, this can be illustrated as the actions of splitting, “dividing”, the market into distinctive groups in which the marketers will be able to identify each group by its uniquecharacteristics, attributes, behaviors, and the list goes on as long as it will be measurable and efficient to meet the companies’ objectives. For years, most companies, including Procter & Gamble andUnilever, realized that they have to be choosier when it comes to attracting their customers
First of all, P&G selected the detergent market, defined it, and understood the benefits, needs,wants, features sought and the purchase and consumption behaviors of the potential customers and categorize them into Table No.1.
Secondly, after having the marketers at P&G understood the selectedmarket, they started segmenting it. They segmented the market geographically which is based on the regions then country population to target more potential customers. Because they want more sales sothey have to focus on the population. Then they did it demographically based on the number of inhabitant users and income. For example, a single student may not be a good target compared to a familywith 5 kids because student will take his laundry to coin laundries. This means they have also targeted the businesses with effect detergents that suites the clients of those business such as hotels,shared laundries or restaurants, companies.
After this P&G divided the market psychologically to see how to target different costumers in the previous segments, they offered different brandnames, different qualities for different purposes to meet all costumers’ expectations.
Finally, P&G segmented the market based on consumer’s behavior. They knew that consumers have different...