Page 47 - EBOOK DPM 10013 POM-FINAL 25.10.2021
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Learning Objectives :
Explain market segmentation.
Explain market targeting
Explain market positioning
4.0 MARKET SEGMENTATION
A market segment is a subgroup of people or organizations
sharing one or more characteristics that cause them to
have similar product needs (Nor Khalidah Abu, 2009).
Market segmentation helps the firm to identify the
customers’ needs more accurately and precisely, and it
can upgrade the performance of the firms. Marketing
objective is more definitely defined and resources are better allocated by doing
segmentation. (Yusniza kamarulzaman, 2013)
4.1 Define Market Segmentation
A market segment is a collection of people or organisations who have similar product
needs because they share one or more characteristics.
Market segmentation is the process of breaking a market into discrete groups with
different demands, traits, or behaviours, which may need different products or marketing
strategies.
People are grouped together based on their similarity to a particular product category.
Subdividing markets, channels, or customers into groups with various demands in order
to give customised solutions that precisely suit their needs.
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