Segmentation in the holiday market Essay Example | Topics and Well Written Essays - 2000 words - 1

Segmentation in the holiday market - Essay Example The customers may differ in the time, place, level, type and subject of education. The choice for market segmentation breathes several crucial reasons for existence and preference. A segmented market provides a better match of customers’ needs. As we know, customers needs differ, so we believe that a segmented market shall hold the ability to address these differing needs. This results in greater customer satisfaction and resultant increase in sales. The acceptance and application of segmentation can see a significant increase in profits for business. Since every customer can afford a different monetary amount for a commodity, segmentation can help increase the average price. This can add to the profit in business. The better opportunities for growth find their existence in the segmented market. It aids in building sales. It also helps retain more customers or say more variety of customers. A customer’s need may change with the changing time. For example, the customer grows older, forms families, and has children, change jobs, or care for a change in living place. By virtue of marketing products that appeal to customers at different stages of their life (â€Å"life-cycle†), a business can maintain customers who might otherwise change their focus to other existent market products. Segmentation of market also helps in the act of targeting marketing communications. It is essential for the growth of any business that its marketing messages reach the prospective customers. However, in the case of a huge size market, there exists a strong risk of missing the important consumers. The expense of communicating the marketing message to the complete market without provision of segmentation is real high. The benefit of segmentation here is to reach the targeted customers more often and at lowers expense. Carefully designed segmentation helps target the market with precision. It