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Market segmentation following competitors performance
If the marketers keep their view on the competitors performance only in case of segmentation then how much logical it will be?
It is very important task to segment the market in case of new business or products or services. This is a very costly process to do it. Because a market segmentation is done by analyzing, location, financial condition, age, sex, community, and so on. Therefore it a costly process to get it done. But if the marketers follow only the competitors performance in the same market with the same offering then it will be possible to reduce cost. Now question arise, how much this thought will be applicable to segment the market successfully?
But there are some problems to do so. It is not always possible to trace out the actual performance of the competitors as they keep it secret. They only show their positive sides in the market to get attention of the public. But actual performance may not be good or bad as estimation.
But it can be important in case of deciding about the market segmentation if it is possible to get the proper information of the competitors performance in the market. It would be possible to save extra costs. Though this is also a considerable matter of the marketers to observe the competitors performances in the market. But we need to see the effectiveness of this process.
Book Philip Cottler
Research question: How to make this policy more effective?
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