Why is there a need for market segmentation? Simply because according to the marketing concept by philip kotler, understanding customers and satisfying their needs better then the competition is the priority of an organisation. But different customers have different needs, and it is rarely possible to satisfy all customers by treating them alike. Thus there is a need for Market Segmentation.
Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. Mass marketing allows economies of scale to be realized through mass production and mass distribution. Thus is the principles of Market Segmentations are not applied, the firms ignore the differing customer needs and another firm would likely enter the market with a product that serves a specific group, and the incumbent firms would lose the customers.
Target marketing on the other hand recognizes the diversity of customers of customers and does not try to please all of them with same offering. The most basic step of in target marketing is to identify market segments and their needs. Thus depending on the type of marketing the firm wants to carry out, they need to carry out market segmentation.
Get Daily Marketing Updates in your Inbox
About Hitesh Bhasin
better in bullet points