Question

What are the benefits of market segmentation?

Answer 1

Market differentiation refers to dividing the market of potential customers based on the characteristics of customers. Benefits of Market Segmentation are as follows -

1) Estimating marketing opportunities - Market Segmentation helps you to determine opportunities in the market by analysing the behaviour of the customers of each segment.

2) Development of product - It makes the development of the product easy. It helps you to develop the product according to the demand of the targetted customers of each segment.

3) Better customer services - Market Segmentation helps you improve your customer service according to the targetted market. It leads to gain competency and customer satisfaction.

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