Question

How should the company segment the market and why. give detailed reasons?

Answer 1

Through segmentation, a company can match customers’ needs and wants. Since all customers have differing needs, they must be handled in different ways.  Segmentation enables identification of the different customer segments and their preferences.  Then, a solution can be customized for each segment using the company’s products or services. As customers grow older, their preferences and buying behaviors change. By identifying these changes, solutions can be provided to customers throughout their ‘life cycle’ by adopting the product or service to the segment’s needs. This is a great way to retain customers as they change their behaviors over time.