Segmentation is the method of separating the end-users according to their demand characteristics and response to advertisement and information from a firm.( Osuagwu 1999, P. 284) also defines market segmentation as the discovery of client strata or class that are homogenous. In addition, market segmentation is all about packaging the products of an organisation into different sizes to attract the affordability of various strata of potential customers. This article will examine the reasons for segmentation of products.

Satisfaction of Customers’ Desire- The needs and wants different consumers vary. Therefore, segmentation identifies the needs and wants of groups of customers with a view to satisfying them. These needs are then matched with segmented products and services. Taste and preferences change with time. The purchasing power of an individual is an important factor that accounts for the type of products or services an individual purchases. Today aluminium roofing sheets are produced in different sizes and shapes, thereby making the roofing sheets affordable to all categories of consumers in the society.

Increase in Turnover and Profits- The end-users react to various prices of goods, with segmentation of products; different price tags can be fixed for each segmented product. By so doing, a company will identify a lucrative segment that will increase its revenue and profit. Moreover, when a particular segment is the delight of consumers, there is the tendency that the producer’s market share will increase and brand popularity strengthened. It is interesting to note, that the reward of a well executed segmentation is reduced competition, costs, and increase in turnover.

Stimulation of Innovative Thinking- Market segmentation reinforces and rekindles market research. When a company conducts researches within the consumers, it will identify the needs and preferences of smaller market segment .In identifying their preferences and needs,  the company goes on to produce this preferred product, which will eventually increase in the revenue of the producer.

Target Advertising- With segmentation an organisation knows where to target its advertisement. A firm will now target the segment of the market of its interest for advertising, rather than waste money where it is not required. As consumers have different needs and preferences, advertisement should be created in a distinctive way to appeal to a target category. Therefore, advertisement must be aimed at a particular market segment in order to achieve optimum result.

In conclusion, the role of segmentation in the life of a company cannot be overstressed. Hence, firms should start recognising the needs, preferences and purchasing powers of different consumers in a society.


Six reasons for market segmentation (June 9, 2014). Retrieved on july 14,2914 fromhttp;//www.market91.com.

Benefits and reasons for market segmentation. (2015). Retrieved from


Osuagwu, C.( 1999). Marketing Principles and Management.

Lagos:Grey Resources Limited.




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