Page 21 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

Enhances possibility for specialized advertising.

Data from market segmentation is essential for uncovering hidden market characteristics and creating more

effective marketing campaigns. Segmenting market data might assist companies in expanding into possible
niche markets. When a company segments the market into different characteristics it help them to understand

which advertisement and marketing strategy would work or attract which group more. For example, some

companies create different advertisement strategies for different age groups or they choose different modes of
communication for different age group like for the younger generation is likely to be attracted by

advertisements on social media and the older age group is like to be attracted by advertisements on newspaper
or radios.

Increased Level of Customer Satisfaction.

By assisting firms to better assist their clients, market segmentation helps them focus their marketing efforts

on the market or the consumer. In the end, this will increase client satisfaction. When a company knows which

customer group to attract with their product they will be focused on that group only and will also tailor or alter
the products according to their needs, this will help them to stay focused on one group of customers and satisfy

their needs to the best of their ability.

Challenges of Market Segmentation.

The Segmentation of such a huge, prosperous, and growing market is not an easy job the company may face

many challenges and difficulties while doing it like the once listed below:-

Limited availability of marketing understanding and expertise and also requires investment.

Businesses typically lack access to the necessary skills and resources to create and implement market
segmentation strategies that have a significant influence on marketing. Investments are made in segmentation.

By segmenting your market, you will need to run some initiatives (like marketing campaigns) more than once

in various methods. This may prove to be more costly than launching a single campaign targeted at a particular
market. This is a difficulty that is absolutely unavoidable. Market segmentation will always have an upfront

cost, but if done correctly, the additional income you will earn by focusing on the segments that provide the
greatest chances for your brand, will be more than offset expense.

Realizing that individuals can be a part of more than one sector.

It is simple to get into the trap of believing that every possible client only fits into one certain market niche.

That being said, this is overgeneralizing things. Let us say you are marketing a certain brand of mocktail. Some

people appreciate having drinks at a restaurant with pals in one of your parts. While others may enjoy drinking
at home. Depending on their present social schedule and the time of week, a person may fit into both of these