Market segmentation

Each parent would like the teachers to give personal attention to their wards. This is practically not possible. If all the children are asked to sit in the same class with various subjects. To facilitate this the class is further divided in according to the subjects. On the same philosophy , as the business or the organization cannot meet the needs of each and every individual in the market the market is divided in to meaningful, relatively similar and identifiable groups, the purpose of which is to enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups.

The total market for a good or service consists of all the people and/or organizations that desire it, have resources to make purchases, and are willing and able to buy.Firms often use market segmentation—dividing the market into subsets of customers that behave similarly. The development of a target market strategy consists of three general phases: analyzing consumer demand, targeting the market, and developing the marketing strategy.
1) The firm determines demand patterns, establishes bases of segmentation, and identifies potential market segments.
2) The firm targets the market through undifferentiated marketing (mass marketing), concentrated marketing, or differentiated marketing (multiple segmentation).
3) The firm then positions it’s offering relative to competitors and outlines the appropriate marketing mix. Meaningful product differentiation is essential.

What do we do as a company?