Levels of Market Segmentation

Levels of market segmentation There are 5 level of market segmentation which are as follows. 1: Mass Marketing 2: Segment Marketing 3: Niche Marketing 4: Local Marketing 5: Individual Marketing 1: Mass Marketing:As the name shows that mass marketing is on huge scale. The seller of the product focuses on whole market. In the mass marketing the product will be produces on mass scale while the channel of distribution will also be big that the product reaches to each and every customer. Huge amount is spended on promotion and advertising of the product that all customers attracted. Due to the mass production and economy of scale, the per unit cost is low and profit margins are high. The level of competition in mass marketing is also high. 2: Segment Marketing:In the segment marketing the marketer or seller of the product divide the market into different segments, which is based on consumer behavior, or based on gender or based on purchasing power or based on location etc. This type of marketing helps the marketers to connect each and every type of customers in some specific segment. Most of the organizations uses different market segments to market their products. The promotional and advertising activities for a particular focus only to the target market for that product only. 3: Niche Marketing:In the niche marketing the marketers focuses on very specific market segment for which very high quality of services and also requires high attention. Hence in the niche marketing the size of the segment is very small, so it enables the marketers to provide niche area of services. In the niche marketing usually competition is low so it’s opportunity for the marketers to charge high prices to customers. Some of the characteristics and requirements of niche are as follows. 1. Different customers have different needs so for this different set of services requires. 2. The marketers require niche skills to provide more specialized niche services. 4: Local Marketing:Local marketing is that type of marketing where marketers focuses on local markets. The per unit cost is usually high due to the low production. The promotion and advertising of the product will also be on local basis. The focus of the marketers is normally on local markets to reach all customer in the region. 5: Individual Marketing:In individual marketing, marketers focuses on individual customers through direct communication channel or through sales persons. It is also called direct marketing and requires high efforts. Mostly it is used for business to business marketing where require more attention to market the product or service. In this type of marketing sales persons is required to meet each individual prospective customer.