Introduction advertising unit Structure

11.3.4 Importance of Market Segmentation : 
 
Market segmentation is a technique of dividing the market of a 
product into several homogeneous groups on the basis of their 
common characteristics. The concept of market segmentation is 
based on the fact that markets of all the commodities are 
heterogeneous. On the basis of their characteristics, customers 
may be divided into several groups. These groups are formed on 
the basis of some similar qualities and such division is called 
market segmentation.
Following points explains the importance of Market 
Segmentation : 
1) 
Market segmentation are grouping of consumers according 
to such characteristics as income, age, sex, urban, rural, etc. This 
helps forming the market into a meaningful buyer group. 
2) 
Market segmentation ensures certain advantages. Infact 
market segmentation is the most important factor in media planning 
because the decision of the media selection would depend mostly 
upon the people who comprise the market. However, it is not a very 
difficult task to provide precisely the necessary facts. 

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Where the market is restricted and clearly demarcated, as a 
particular section of the community such as doctors, architects, 
engineers, hoteliers or even telephone or car owners, the media 
strategy can be simple and straight forward, making use of the 
selective media like direct mail, etc., depending of course, on the 
budget available. 
It is only when a wider mass market is to be reached that the 
problem of selection of media becomes complex. Here the problem 
arises because a mass market does not permit its definition as 
precisely as is required to make corresponding media selection 
predictable. 
3) 
Markets for a new product or the existing products may be 
divided into segments on the basis of geographic, demographic and 
psychographic variables. Good segmentation involves the division 
of a market by a succession of variables. The market manager 
must always be open to the possibility of finding new segmentation 
variables and combinations that will reveal fresh marketing 
potentialities. 
4) 
The market may also be divided into different locations such 
as nations, states, districts, talukas, etc. It could be recognised that 
market potentialities and cost vary with market location. Thus, it 
determines the geographical markets which could serve best. 
5) 
Marketing manager may also segment a market on such 
criterion as the age, sex and marital status of the population. A 
product for use of infants will have high sales potentiality in suburbs 
or extended suburbs where the level of fertility is expected to be 
high as compared to the city. Likewise toothpaste will have better 
market in urban rather than rural areas. As such market will be 
segmented on the basis of urbanisation.