Question: Market segmentation plays a major role in strategy implementation. According to David, David, and David (2020, p. 1272), market segmentation is defined as areas in
Market segmentation plays a major role in strategy implementation. According to David, David, and David (2020, p. 1272), market segmentation is defined as "areas in a perceptual map where there is a cluster of ideal points indicating an attractive group of potential customers to target." This helps divide customers into groups depending on their product needs and buying habits. For example, these segments could be based on consumers' demographic, geographic, psychographic, or behavioral characteristics (David et al., 2020). There are multiple reasons for segmentation, including high costs, effectiveness, and various needs. I think this is a huge part of the industry working in sales. For example, I have different marketing for a women's health clinic for our breast pump clinic separate from my orthopedic surgeons. Using market segmentation brings personalization to appeal to why our service is beneficial to their clinic. David, David, and David (2020, p. 496) suggest that "consumers vary in their needs and wants, blanket marketing is rarely an effective strategy, partly due to the high cost of reaching everybody." Sometimes, marketing a whole hospital system can be more timely, costly, or even unsuccessful if it is not segmented. I find using market segmentation is the best strategy implementation because going after one group within a hospital, such as the birth unit, will help gain trust to close the next department, like the emergency department.
Do you agree. Please explain.
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