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Why segmentation is important in marketing and how small businesses can afford R&D of segmentation?

 

We all know that a company's success is based on two components: operational and marketing. One can't function without another. There are many examples when great innovative companies that have been destroyed without effective marketing.  Many companies don't have an effective marketing strategy, because companies think that their invention will be sold by itself. In fact, marketing strategy is very important and should be based on careful research and analysis. How can a company conduct R&D? What information can be used for marketing segmentation?  The most popular approach is to find demographics and geographic data. We can add also firmographics (information about industry and company), and psychographics( information about customers' motives to buy). Data on demographics, geographic, and firmographics aren't that difficult to find in the Internet Era. Although, psychographics are the most important.
According to Thomas V. Bonoma and Benson P. Shapiro's " Nested approach" buyer's motives are the most important. When a company chooses a method of R&D a cost should be a major consideration. Psychographics could cost more than $100000. Unaffordable for many businesses.  What is the solution you may ask? Don't get discouraged.   I think for small businesses with limited financial resources, the solution is to spend a little money on a variety of segmentation methods. At least to have some information. Also, fortunately for many businesses, a marketing strategy that follows segmentation research is based on creativity and imagination. So, even with the most sophisticated research, a marketing strategy could be terrible if it's been created incorrectly. I personally think, that even businesses which can't  afford to spend on R&D of segmentation can be successful at the end, if they have a great understanding of their customer's motives to buy their products or services.

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