Critically Discuss the Role of Segmentation

Critically discuss the role of segmentation in developing robust marketing strategy.

Nowadays, customers require more and more diversified products; due to this change on the market the companies are no longer able to use mass marketing successfully. What needed is a more individual approach, where companies analyse the wants of particular group of customers and create a product that satisfies them. For the reasons listed above firms started using market segmentation strategy. “Market segmentation is the process of dividing the target market into groups to better understand their current behaviours, evaluating each segment and selecting target segment(s) and then developing an appropriate marketing mix for those segments which includes developing messages and tailoring programs to meet their specific needs.” This essay is going to critically discuss segmentation as a valuable marketing strategy.

Segmentation plays an important role in developing a marketing strategy. Attracting more customers is one of them. To attract more customers firms should offer their products not by product groups but by consumer groups. For example, Garnier, the company that sells cosmetics, organizes their products by age or skin type, by placing products such as face wash, day creams and night creams for young skin on one shelf and products for aging skin on the other shelf in the shop. This is much more efficient for consumers purchasing more, then if for instance, they would put all creams in one place and all face washes else where grouped together. This approach makes it easier for different groups of consumers to find what they need, and gain satisfaction from the experience of shopping. Also it increases the chance of them buying more products, as there is a higher possibility of them seeing other suitable products while shopping for something they were looking for at first.

Although, segmentation potentially leads to higher profits because of its success with consumers it...