country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Impacts Of Segmentation On Market Growth

tag 0 Download4 Pages 968 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Discuss about the Impacts of Segmentation on Market Growth.

 

Answer:

Introduction

Market segmentation involves the division of the market and the potential customers based on certain similar characteristics. Legge (2009) highlights that a market can be segmented based on shared features like demographical factors, common consumer needs, similar interests or similar consumer profiles. With segmentation, an organization is able to identify the portions of the market with potential for increased sales and hence profits. At the same time, the strategy enables the sellers to treat the selected areas while focusing on a particular area of specialization which is in conformation with identified common needs. It can therefore be deduced that dividing the market enables an organization to concentrate and hence exert more effort on the established target markets. According to Gavett (2014), when a segment is sufficiently managed, there is the likelihood of registering growth in the overall market for the goods or products. In this essay, we highlight the relationship between market segmentation and market growth. Basing the arguments on review of relevant literature, the discussion seeks to establish whether or not segmentation is an ideal approach for enhancing market growth.

 

Segmentation and Market Growth

According to the theory of market segmentation, marketers tend to believe that each segment of the market is characterized by a unique need based on the interests of both the business and the consumer. As noted by Jones (2010), organizations tend to exert more effort on the segments of the market which are laced with a huge potential for increased sales and profit.  For instance, when a given segment is identified to be productive, the business organization is likely to install strategies which would enhance adequate access to such locations. Such steps may include improving the infrastructure around the area in addition to updating the business-consumer relation strategies. Each of these steps may not only play a crucial role in stabilizing the company’s market base but also expands it in one way or the other.

Segmentation also enables a business organization to note the portions of the market which may not be ideal for good sales and hence return on investment. By identifying the specific needs, preferences and consumer profiles in a given region, the organizations are able to specialize their supply strategies. According to Craig (2009), the supply of products and services is always meant to satisfy these identified needs as much as possible. With this trend, the business organization lowers its marketing activity rate in the segments with low potential for growth. The resources which could have been used in these segments are therefore diverted to enhance the ‘fertile’ market segments. This strategy leads to a gradual expansion of the market.

Additionally, segmentation of the market enables the business organization to identify the portions in which the consumers experience low levels of satisfaction. The organization in turn uses these outcomes as an appropriate opportunity to enhance the market and hence sales.  In order to achieve this, the company may modify their products and services in a manner that suits the needs of the consumers (Jones and Tadajewski, 2016). When the satisfaction in a given market segment is effectively achieved, the business organization establishes a firm grip of the clientele in the given region. With the registered success in this phase, the organization applies creativity and innovation to device new methods which in turn increases customer satisfaction within the target market. This strategy plays a pivotal role in enhancing market growth within a given segment.

On the other hand, segmentation may not be considered an ideal approach of enhancing market growth especially when the strategies involved concentrate on one area at the expense of the other market portions. Due to the dynamic nature of the market, the consumer needs and preferences might change with variations in the social and economic status. This therefore implies that there is not specific guarantee a market segment will remain productive forever. As a result, a company may experience a drastic reduction in sales when the consumer reception in a given segment changes due to the encroachment of competitors offering better prices and services. The effect may be worse in case the company’s market largely depended on the given segment. It can therefore be deduced that over-concentration in one portion of the market hinders an organization from exploring other options. When other segments are not adequately addressed, a holistic growth in the market base is greatly hindered.

Conclusion

When a market is effectively segmented, an organization is able to identify the areas with potential for growth. Strategies can therefore be implemented to enhance sales in the identified target market. This in turn enhances market growth. However, managing market segments requires effective strategies which would ensure minimal risks in case of changes in the market trends. In addition to identifying a particular productive segment, there is the vital need for an organization to diversify its marketing approaches. This enables the business entity to establish appropriate alternatives in case the target segment fails to meet the set target and organizational expectations. In a nut shell, segmentation can enhance market growth but only when the right management approaches are installed to accompany the strategy.

 

References

Craig, G. (2009) ‘A Benefit–Based Segmentation’. Journal of Travel Research, 31(1), pp. 30–35.

Gavett, G. (2014) ‘What You Need to Know About Segmentation’.  Harvard Business Review, 4(1), pp. 2-17.

Jones, G. and Tadajewski, M. (2016) The Routledge Companion to Marketing History. Oxon: Routledge.

Jones, R. (2010) ‘The History of Marketing Research’. Journal of Marketing, 14(5), pp. 71-80.

Kleiman, L. (2010) ‘Competitive Advantage and Public Policy: Grounding Segmentation Strategy in Resource-Advantage Theory’.  Australasian Marketing Journal, 12(1), pp. 7-25.

Legge, D. (2009) ‘Consumer Segmentation through Latent Class Analysis’. Journal of Consumer Research, 10(1), pp. 170-174.

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Impacts Of Segmentation On Market Growth. Retrieved from https://myassignmenthelp.com/free-samples/impacts-of-segmentation-on-market-growth.

"Impacts Of Segmentation On Market Growth." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/impacts-of-segmentation-on-market-growth.

My Assignment Help (2018) Impacts Of Segmentation On Market Growth [Online]. Available from: https://myassignmenthelp.com/free-samples/impacts-of-segmentation-on-market-growth
[Accessed 30 March 2020].

My Assignment Help. 'Impacts Of Segmentation On Market Growth' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/impacts-of-segmentation-on-market-growth> accessed 30 March 2020.

My Assignment Help. Impacts Of Segmentation On Market Growth [Internet]. My Assignment Help. 2018 [cited 30 March 2020]. Available from: https://myassignmenthelp.com/free-samples/impacts-of-segmentation-on-market-growth.


Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of MyAssigemnthelp.com. We at MyAssignmenthelp.com deliver quality subject specific assistance on more than 100+ subjects. For us, students' need is foremost, and we work round the clock to offer science, humanities and commerce assignment help. Among Commerce wing, our one of the most popular services is capital budgeting assignment help. In science segment, we have gained popularity with biology assignment help.

Latest Samples

HI6026 Audit Assurance And Compliance12

Download : 0 | Pages : 15
  • Course Code: HI6026
  • University: Holmes Institute
  • Country: Australia

Answer: Introduction: When there is performance of sub-standard audits and adequate assurance could not be determined reliably, the key stakeholders are prone to consequential risks and they include the auditors as well. This report would intend to perform the stakeholder analysis of an ASX listed organisation. For this, Wesfarmers Limited is taken into consideration, which is the giant retailer in Australia with workforce around 217,000 empl...

Read More arrow

ALR207 Media Relations

Download : 0 | Pages : 9

Answer: Media Release Deakin University Centre For Film & Image For Immediate Release 21/01/19 Deakin University Asian Film Festivals The Deakin University Centre for Film and Image will be hosting the Asian Film Festivals this year. DUCFI is collaboration of the Deakin University, government and industry run by Professor Charles Cheryble. In order to promote the Centre’s community engagement activities in 2019 DUCFI has b...

Read More arrow Tags: Australia Melbourne Management database systems University of Melbourne 

MBA402 Governance Ethics And Sustainability 4

Download : 0 | Pages : 10

Answer: Introduction  Internal competition, decentralization and several elements increase the risk of the company; risk exposure calculator calculates the risk of the company by considering the pressure points related with the performance, information management and growth of the company  (Forouzanfar & et al. 2015). The present study is related with the analysis of risk of the company named as Property Millionaire. The company...

Read More arrow

UUMG8300 Leading Business And Organisational Change

Download : 0 | Page : 1
  • Course Code: UUMG8300
  • University: UUNZ Institute Of Business
  • Country: New Zealand

Answer: Degree To Which Stakeholders Trust Those Leading The Change Unitech is one of the leading academic aspirants in contemporary and applied learning and it need to change with time and situations to enable better futures to students, enterprises and communities as a whole Carnall (2018). Though change is a complex process but still it is obvious for Unitec. The company stakeholders should rely on communication for managing the changes...

Read More arrow

ACC03043 Corporate Governance

Download : 0 | Pages : 10

Answer: Report To Chairperson Board of Directors From: Jane White, Corporate Governance Consultant Date: 22 January 2019 Subject: Cybersecurity policy of the company In the world full of technology, every organization is diverting it is focused on the use of technology. The reason behind the same is the infinite advantages that technology adds to the overall value of the company. The use of the internet and other technological innovatio...

Read More arrow
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,236,324

Orders

4.9/5

Overall Rating

5,066

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

234 Order Completed

100% Response Time

Samantha Ji

PhD in Chemistry with Specialization in Organic

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

647 Order Completed

98% Response Time

Adlina Han

Masters in Marketing with Specialization in Branding

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1265 Order Completed

97% Response Time

James Cook

Masters in Management

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

453 Order Completed

98% Response Time

Howard Asuncion

LLM in Criminal Law

London, United Kingdom

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

thank you guys i have not got grade but look vey good. you always doing good job. thank you again and again

flag

User Id: 380549 - 30 Mar 2020

Australia

student rating student rating student rating student rating student rating

Amazing work done by the expert. Would love to give more work to this team. Attention to detail

flag

User Id: 127429 - 30 Mar 2020

Australia

student rating student rating student rating student rating student rating

It was awesome and got desire score..I am very happy to work with them and I will work with them.

flag

User Id: 349582 - 30 Mar 2020

Australia

student rating student rating student rating student rating student rating

I\'m okay with the work. Took time to answer my concerns and feedbacks. Delivered within the required timeframe

flag

User Id: 382318 - 30 Mar 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?