Week 3 -Paperwork 1 By Wednesday (21 June 2017)(Grade 3%) For your Individual Summary, post a summary of approximately 250 words of what you have learned from this Collaboration, addressing the following questions: What are the advantages and disadvantages of using segmentation to target offerings to specific market segments? How does an understanding of external environmental factors contribute to more effective target market segmentation and value creation for the organisation and for their customers?

Collaboration Summary Post

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Collaboration Summary Post

Advantages and Disadvantages of Using Segmentation to Target Offerings to Specific Market Segments

There are extensive advantages of market segmentation as it helps target offerings to spot and compare marketing opportunities, hence, making the best choice. As well, advances knowledge about the target segments making service delivery and product’s quality well versed in meeting the standards of the specific market segment (Sternthal & Tybout, 2001). Additionally, segmentation makes the allocation of funds and investments towards the target segment easier as the management precisely understands what needs to be done and to what quantity.

On the contrary, there is also profound disadvantages o market segmentation as the approach increases costs having to focus on several market segments. In turn, a larger inventory ought to be sustained and maintained to cater to specific segments. This creates redundancy to already created plans towards particular segments, in case, of a shift in the change of the characteristics of the particular segment.

How Understanding of External Environmental Factors Contribute to More Effective Target Market Segmentation and Value Creation for the Organization and For Their Customers

The understanding of external environment makes it possible to relate to the factors influencing a particular target segment. In turn, it becomes easier to develop response strategies that can work efficiently in the affected target segment and provide better alternatives. Similarly, value creation is critically enhanced with an understanding of the external environment as the management have an idea of the issues likely to exert pressure on the product. Hence, offer a solution before the effect takes cause assuring the customers of the quality and standards of the products designed for target segment (Ballantyne & Varey, 2008). Therefore, giving the organization a competitive advantage in regard to how they handle their customers and meet the expected results, quality, and standards wrapped up in value creation of the products.

References

External Sources

Ballantyne, D., & Varey, R. J. (2008). The service-dominant logic and the future of marketing. Journal of the Academy of Marketing Science, 36(1), 11-14.

Sternthal, B., & Tybout, A. M. (2001). Segmentation and targeting. Kellogg on Marketing, John Wiley & Sons, Inc., New York, NY, 3-30.