Question

Why customer segmentation is too important for marketing?

Answer 1

This process is actually called as Market Segmentation where the prospective and existing customers are segregated into different categories like the place they live, lifestyle, purchase behaviour, preferences, etc. and target on the specific category. When a business organisation know their target category they can make strategies accordingly to make a product or service / for improving their existing product or service. And as to why is it important for Marketing is because when u know ur target category customer u can devise marketing strategies accordingly to hold the existing customers or to attract potential customers. For example a marketing department analyze the behaviour pattern of their target customers and comes up with ideas on how to lure them and stick them to the company like advertisements, billboards, ads, etc. to catch the customers attention to the product or service that they are selling, fixing an apt price for the products and service due to which the customers will buy (this again do depend on target customers, market competition, etc.), then comes up with schemes so that the existing customers remain loyal and please note that for marketing function to work smoothly customer delight is very important so for that many companies focus on after sales service too, and creating distribution channels on how to make the products reach to the target customers aptly...the best example of distribution channels is Schmitten chocolates - though the chocolates are good but it is not as widely available as Cadbury chocolates which means their distribution channels is not reaching to their target customers well like it's competitors... please note Marketing doesn't mean advertising as advertising is only a part of marketing and marketing involves various other functions too like I mentioned and for marketing to function knowing the target existing and potential customers is very important.