This paper illustrates that the market consists of different types of consumers that have a variety of needs and various types of products. The market further divides itself into different types of consumers, further divided into subgroups and segments. The needs of these different types of consumers may vary due to a variety of factors. The concept of market segmentation, therefore, refers to the process of targeting different types of consumers with different marketing programmes and products, suitable to their needs. Market segmentation appears to be a simple theory; however, it remains one of the most widely researched marketing topics. The topic of market segmentation has been around in the world for nearly a decade. It has gained large importance these days, especially in the industrialized world. The needs of consumers are widely heterogenic; therefore, different products are made that target specific needs of consumers. The theory of market segmentation, given by Smith has maintained its value, for he recognized the heterogeneity of the needs of the consumers, because of their differing preferences. The purpose of market segmentation covers maximizing sales and profits. In the modern world of today, the theory of market segmentation has undergone various changes and has gotten more complex. It remains extremely important for a marketer to have a detailed analysis of the needs and preferences of different types of consumers. Mass marketing does not take in to account all these different types of preferences. Therefore, the approach of market segmentation proves to be extremely beneficial. The marketing theory takes into account the different segments of the market. It also does not remain feasible to target the needs of each consumer. Consumer groups are divided according to their similar requirements and buying characteristics. The process of market segmentation begins this way. The factors that determine these segments include ‘geographic, demographic, psychographic, and behavioral’ factors.
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The paper attempts to explain the process of market segmentation. It also describes the reason for carrying out market segmentation. Furthermore, it talks about the concept of ‘targeting’, which remains extremely important in the theory of market segmentation…
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