Horti-Business Management (2+0)

Market Segmentation-Introduction

• A market should be defined in terms of various characteristics such as economic status, age, education, occupation and location. The best opportunity is to identify a market segment that is not well served by other firms. In determining the firm’s market segment, the fundamental aspects to be considered are:
a) What is the place of the firm in the industry and how it can compete with others?
b) Whether the firm is known for its quality or price
c) Image of the firm among the customers
d) If the firm has limited number of customers the reasons for it.

• A common error found in many retailing firms is straddling the market’ or attempting to sell both high quality and low quality goods. As a result, the retailer has a limited inventory of everything but does not have a good selection of anything. In sum, the firm should asses its share in the market.
  
• This perception is possible only when the firm stresses quality, reliability, integrity and service rather than low prices.