It is an important step to understand market
segmentation in formulating business-level strategies because it is an
important basis of many successful marketing strategies. Thus, when you
carefully chosen segments would allow tailoring the marketing mix to more
customer needs. Hence, the segmentation of the overall market as well as the
derived target markets are the basis for determining any particular marketing
mix. In this way, they will help to invest marketing spending more effectively.
Moreover, in most cases buyers of a product or a service are no homogeneous
group and every buyer has individual needs, references, resources and behaviour.
Therefore, one way or another, understanding market segmentation is necessary
to be considered in formulating business-level strategies.
