Advantages:
Market segmentation is useful when you have limited resources to deploy, so you need to make sure you're tapping the correct line to be able to hit your targets on schedule.
- More efficient use is made of marketing resources - less waste.
- A competitive advantage can be gained in a particular part of a market.
- It's beneficial for small firms as uses less resources.
- Products can be modified to be exactly what the consumer wants.
- Marketing mix can be more targeted.
- Guides marketing research
- Improves satisfaction
- Improves forecasting
- Identifies competition and opportunities
Disadvantages:
- Costs in actually finding out who to target
- Increased costs to develop variations of the product.
- Higher stock holding costs.
- Higher advertising and other costs.
- Increases marketing costs
- Consumer backlash
- Limits general popularity
Market segmentation is useful when you have limited resources to deploy, so you need to make sure you're tapping the correct line to be able to hit your targets on schedule.
- More efficient use is made of marketing resources - less waste.
- A competitive advantage can be gained in a particular part of a market.
- It's beneficial for small firms as uses less resources.
- Products can be modified to be exactly what the consumer wants.
- Marketing mix can be more targeted.
- Guides marketing research
- Improves satisfaction
- Improves forecasting
- Identifies competition and opportunities
Disadvantages:
- Costs in actually finding out who to target
- Increased costs to develop variations of the product.
- Higher stock holding costs.
- Higher advertising and other costs.
- Increases marketing costs
- Consumer backlash
- Limits general popularity
