Reasons Why Market Segmentation is Important to Strategy Implementation

Strategic Analysis, Management, and Planning
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Strategic Analysis, Management, and Planning
Market segmentation refers to customers' market segmentation into diverse homogenous groups of customers where each reacts inversely to communication, promotion, pricing, and other marketing mix variables. Marketing segmentation is crucial to ensure that people and organizations invest more efficiently in marketing spending. Over the years, several organizations, including Walmart, have implemented this model in their strategy. This review reflects reasons why market segmentation is important to strategy implementation.
Market segmentation streamlines market expansion. With geographical segmentation, market expansion occurs instantly (Tarver, 2023). For example, Walmart splits its customers according to their physical location. The company does not stock snow shovels in areas that rarely experience snowfall, like San Diego. Whenever a corporation knows its segments and strategy to market to a different segment in a given location, the can quickly expand to another area.
Another reason why market segmentation is necessary is that it creates room for targeted communication. While product characteristics and benefits are similar, organizations must target segments with unique communication. This indicates that messaging will be different for diverse segments. For example, one of Walmart's segments is based on its customers' age. Walmart gains loyalty from younger customers by effectively engaging in socia...