Question

How can market segmentation make the marketing mix more complicated?

Answer 1

Market segmentation refers to dividing the entire customer base into various segments based on factors such as demographic factors or customer needs. Marketing mix, on the other hand, is the combination of variables (place, promotion, price, product) which a company can control to influence the target market. Therefore, when the marketing mix is targeted to different segments, they cannot be unified and must also be differentiated based on the segmenting variables. This implies that the company must plan and organize marketing mix factors distinctly for each segment and execute the strategies separately. I the segments are too diverse, this may not be managed by a single team and activities of multiple teams for multiple segments are to be monitored and controlled. This will increase the complexity and cost of marketing activity and effort.