Business – 3.1 The nature of marketing – Market segmentation | e-Consult
3.1 The nature of marketing – Market segmentation (1 questions)
Login to see all questions.
Click on a question to view the answer
| Aspect | Advantages | Disadvantages |
| Market Coverage | Creates highly specific target groups, increasing relevance of product offers and promotional messages. | Complex segmentation can lead to fragmented markets, making it harder to achieve economies of scale. |
| Resource Allocation | Enables precise budgeting by directing spend to the most profitable segment combinations. | Higher research and data‑analysis costs; requires sophisticated CRM systems. |
| Customer Loyalty | Tailored offerings foster stronger brand attachment and repeat purchase behavior. | If segments are too narrow, customers may feel excluded, reducing overall brand perception. |