Market Segmentation Strategy Implementation Guide

A clear definition to market segmentation has been given by my colleague in this case. More specifically, market segmentation, as David, David & David (2020) observe, has got to do with the division of the market into unique client/buyer subgroups that are largely distinct in terms of either their buying habits and/or product needs. It would be prudent to note that some of the formats or criteria that could be deployed in market segmentation are inclusive of, but they are not limited to common interests and priorities. In addition to highlighting the relevance of market segmentation in strategy implementation, my colleague also cites Lyft as one of the companies that have successfully made use of market segmentation. There would be need to add that in embracing market segmentation, companies like Lyft develop greater customer insights and further benefit by achieving deeper customer engagement.

From the onset, my colleague attempts to give a concise definition of market segmentation and highlight the common segmentation criteria deployed by enterprises. Various reasons for market segmentation have also been offered. There would, however, be need to add that thanks to market segmentation, an enterprise can focus on the most viable customers. This is especially important given that to a large extent, focusing on the entire market could be resource intensive and counterproductive in the long run. Thus, by embracing market segmentation, businesses can apportion or allocate their resources, efforts and focus in an effective and more deliberate manner for enhanced chances of success. My colleague has glossed over a number of companies in an attempt to demonstrate that improper market segmentation has the potential to inhibit business success. This assertion reinforces David, David & David (2020) statement to the effect that “…effective segmentation, target marketing, and then positioning is required for organizational success.” Examples of companies that that have been successful as a consequence of effective segmentation are inclusive of; Coca-Cola and Kellogg’s.