What is a segmented market?
The segmented market is a market that is somehow isolated from other markets. The insulation can be complete or partial and somewhat liquid. The process of creating a segmented market can be a deliberate marketing strategy that is designed to maximize the flow of information and generate sales on a secondary or specialized market, or originated due to unforeseen market imperfections.
When the market is intentionally segmented, the reason is usually related to determining the direction by which the company brings the design, production and final sale of the product line. By distributing or distributing a larger market into a smaller and easier managed fund of potential customers, it is easier to design products that attract this group of consumers. Within the process, those who form a segmented market are somewhat removed or isolated from the competition and remain loyal on the basis of factors such as brand recognition, quality and price.
The intentionally segmented market also has the advantage of getting betterLimited marketing resources. It is easier to determine how much the available sources can be used to achieve the intended customer base and thus increase the potential for sales and income production. Small businesses sometimes use this model when the product line is only relevant to specific types of consumers, but large corporations that want to penetrate new markets than their competitors sometimes use the same strategy to design and start a new product.
If the presence of a segmented market is not based on deliberate elections, the result may be somewhat less beneficial. The ability to create a functional level of communication between manufacturers and consumers is disturbed, which in turn leads to the less -effective use of work, capital and other resources. It is necessary to identify market imperfections of this type and the solution found before the situation becomes a real opportunity for all involved.
The ka segmented market is also found with investment opportunities. The approach known as a segmented market hypothesis claims that it is not possible to replace specific tools to those who have different terms. A classic example is related to long -term and short -term investments. If the investor wants the investment portfolio to be somewhat like, then it will be a better choice focusing on short -term opportunities that in less than a year in less than a year. Long -term investments that may last for more than a year would prevent the desired return, because the conditions for these occasions differ from investment in short -term investments and therefore do not create the desired result.