Answer to Question #250783 in Economics for olga

Question

Klear Garments Limited a clothing company needs your help in getting market in Nsambya, advise on the possible segmentation bases which they can use? Support your illustrations with examples.

Answer 1

Market segmentation is like filters in an online store, but we only filter not products, but groups of people. Filtering criteria can be different: we filter auto parts according to one criteria, and clothes - according to others. So it is with the market: we start from what needs to be done and what data is available.

If you do not segment your base, you may find yourself in the situation of a well-known jewelry brand that used automatic calls to advertise in the voice of a famous singer. The problem here is not even that everyone is tired of such calls, but that without segmentation they are ineffective. In the case of a large brand, inefficiency can be compensated for by scale, but for a small business, the lack of segmentation can damage the unit economy.

It is necessary to segment the market both at the start of a business and when the business is already running. In the first case, this is the process of market segmentation, to select the audience on which we will focus our efforts, and in the second, to find points of growth.