Market segmentation strategy refers to the practice of dividing a market place down into different section. This is done basing on some selected criterion. It is a practice that is common in very many places and has been embraced by virtually all big and well organized selling places.
Here, the market stalls are divided such that there is a place for food stuffs, a place for clothes as well as a place for machinery. These places are then divided further into smaller portions depending on the varieties found in that place. For instance the place for food stuffs may be divided into a place where vegetables are found, another where grains are found and another where the food additives or food spices are kept.
The method or material used to do these segmentation varies greatly. The material used to do so can be used to so can be used to classify the country to which that market belongs. Those in first class countries comprise of well set out stalls with a lot of space and comfortable facilities for placing the goods. Those in developing countries may have some stalls, but some may just comprise of some wooden structures.
The rules on how these places are sectioned are usually given or sourced from different places. In towns, the local government is in charge. They are the ones that instruct on how the place should be organized and then inform the vendors on how they are expected to operate within those places. Having been clearly instructed, any individual going against the arrangement is heavily punished. In local markets, the arrangement may or may not be adopted, depending on what the members want.
There is quite some number of reasons why this activity is usually done. In well developed cities, it is done to bring order. This is because people in these places believe so much in organization in everything they do, hence cannot allow the selling places to tamper with the organization levels in other places.
There are very many advantages associated with this arrangement in market places. For one, food does not get to mix with other substances. This therefore keeps what is to be consumed free from any form of contamination. Besides, people do not have to keep walking through the place trying to find vendors selling particular products which at times may even be too few hence difficult to trace. People also conduct their purchases in a highly organized manner.
However, this strategy also has got its shortcomings. It does not allow for interaction between the vendors of different commodities since they all stay only with those with similar products. As such, the people may never get to learn from each other. In some cases, equal portions may be allocated to all sections. This may not work well especially for the sellers who are majority. They may end up being so squeezed since they are limited from occupying other free spaces in other stalls.
Market segmentation strategy is very common in virtually all countries. Many people have started appreciating it. Even those that are under no instructions to embrace it, have decided to embrace it locally.
Here, the market stalls are divided such that there is a place for food stuffs, a place for clothes as well as a place for machinery. These places are then divided further into smaller portions depending on the varieties found in that place. For instance the place for food stuffs may be divided into a place where vegetables are found, another where grains are found and another where the food additives or food spices are kept.
The method or material used to do these segmentation varies greatly. The material used to do so can be used to so can be used to classify the country to which that market belongs. Those in first class countries comprise of well set out stalls with a lot of space and comfortable facilities for placing the goods. Those in developing countries may have some stalls, but some may just comprise of some wooden structures.
The rules on how these places are sectioned are usually given or sourced from different places. In towns, the local government is in charge. They are the ones that instruct on how the place should be organized and then inform the vendors on how they are expected to operate within those places. Having been clearly instructed, any individual going against the arrangement is heavily punished. In local markets, the arrangement may or may not be adopted, depending on what the members want.
There is quite some number of reasons why this activity is usually done. In well developed cities, it is done to bring order. This is because people in these places believe so much in organization in everything they do, hence cannot allow the selling places to tamper with the organization levels in other places.
There are very many advantages associated with this arrangement in market places. For one, food does not get to mix with other substances. This therefore keeps what is to be consumed free from any form of contamination. Besides, people do not have to keep walking through the place trying to find vendors selling particular products which at times may even be too few hence difficult to trace. People also conduct their purchases in a highly organized manner.
However, this strategy also has got its shortcomings. It does not allow for interaction between the vendors of different commodities since they all stay only with those with similar products. As such, the people may never get to learn from each other. In some cases, equal portions may be allocated to all sections. This may not work well especially for the sellers who are majority. They may end up being so squeezed since they are limited from occupying other free spaces in other stalls.
Market segmentation strategy is very common in virtually all countries. Many people have started appreciating it. Even those that are under no instructions to embrace it, have decided to embrace it locally.
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