What are the reasons for not segmenting markets?
Answers:
I know this will make the die hard marketeers wince, but business strategies focusing on economies of scale tend to minimize segmentation given that it is an added cost, and that their strategy is to reduce costs by treating the whole world as one homogeneous market.
It would be nice to segment your market as much as possible, and the ultimate market segmentation is at the individual level where each customer receives customized attention. However, the value for the customer is frequently not as great as the cost of this level of segmentation (or any level of segmentation).
An example of a non-segmented product is SONY with your DVD player, or flat screen TV. SONY offers a single set of products, with no meaningful differentiation in marketing towards the whole world. So much that the product information material, owner's manuals etc are written in every conceivable language since the product is produced with no intention of local taylorization.
Then benefit of not segmenting is economy of scale, resulting in lower costs which can either be used to price compete, quality compete, marketing, developing new products or to pass on to the firm's ownership.
There are really no good reasons for it. "When you try to appeal to everybody, you appeal to no one"
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