EFFECTS OF MARKETING SEGMENTATION ON SALES PERFORMANCE IN BEVERAGES INDUSTRY
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EFFECTS OF MARKETING SEGMENTATION ON SALES PERFORMANCE IN BEVERAGES INDUSTRY
Chapter 1 (1.0):
Introduction
Marketing has evolved over time from numerous concepts and ideologies, including production, sales, and product conceptions.
The marketing concept is based on the customer orientation philosophy, which seeks to identify unsatisfied consumer needs and wants, and then develops goods and services aimed at filling and satisfying those needs.
While not all organisations practise this concept, successful firms do. Given the severe and expanding competition, the global search for profitable sites among marketers of goods and services,
it has become necessary for enterprises to implement strategies in order to succeed, grow, and remain in the market in order to reach acting organisational goals.
Marketing strategies are created using marketing objectives and wider organisational goals.
Marketing techniques include the marketing purpose of increased sales, higher market shares, and growth market penetration awareness, to name a few. To attain these aims and objectives, marketing evaluations and strategies are created and implemented.
Because enterprises cannot efficiently service all of them in a large market, the world’s population has grown and consumers’ purchasing criteria, needs, and traits have become more diversified.
It is unavoidable to identify those sections of the market that are profitable and can be served effectively given the available organisational resources and capabilities, necessitating the use of effective market segmentation techniques.
Marketing effect and segmentation are always customer-oriented, which is compatible with the marketing principle. Market segmentation is the process of breaking a market into separate and significant subsets of customers who require a targeted call during a marketing campaign to meet their demands.
Many businesses in the past used the mass marketing notion as a sales turnover strategy, focusing on mass production, mass distribution, and mass promotion of a single brand of items to all customers.
The premise for this method was that it creates the greatest potential markets, which leads to the lowest costs, including production costs, overhead costs, and marketing costs, resulting in cheaper pricks or greater margins.
However, in this day and age of fierce rivalry, multiplication of marketing programs/functions, and increased customer advancement in education and awareness, businesses no longer practise “one size fits all” marketing.
Thus, in order to increase profitable sales and customer happiness, mass marketing is being phased out in favour of market segmentation, which now recognises distinctions in segment needs, wants, and responses to marketing campaigns.
Market segmentation extends beyond product design considerations to include price, promotion, and distribution variables, as well as an overall understanding of each segment’s demands in order to establish a suitable marketing mix.
Firms do not engage in marketing segmentation unless a thorough analysis of customer behaviour within the market is completed. A thorough study of customer effectiveness in marketing research is essential for a better understanding of their distinct and homogeneous qualities. This ensures the grouping of clients with comparable requirements and characteristics.
Essentially, it comprises of a huge identifiable group of people who share similar demands, shopping habits, geographical location, and purchasing requirements, hence market segmentation is a strategy that businesses should use to improve their success.
To a considerable extent, it is the process of splitting a heterogeneous market for products and services into many segments, each of which is homogeneous in all significant ways.
Management thus chooses one or more of these market segments as the organization’s target market(s), and based on an understanding of their needs and desires, a matching marketing mix is envisaged, developed, and directed towards satisfying them at a profit.
Most importantly, segmentation allows the form to focus its marketing efforts and resources on the most profitable target market, allowing it to complete efficiently in one or two segments.
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