Market Segementation

[jam17p]

Does anyone know why service businesses take segmentation more seriuosly. What are the consequences if they do not? As many different viewpoints would be great. Diadvantages and advantages would be very helpful!!

[modge]

Market segmentation recognises that an advertisement doesn't have to appeal to everyone. In fact, it can appeal to a very small, targeted group of people. Market segmentation aims to find small, well-defined groups of people who share some charctertistics and who get their advertising information from the same place. These subgroups can be defined by such variables as demographics (physical or social characteristics of a population); psychographics (lifestyle characteristics of a population or other group of people); where they live (urban versus rural versus suburban, coast versus inland ). I wasn't aware that service businesses took segmentation more seriously, but it's something that more companies are recognising as vital in today's market.