Why is segmentation important?

Segmentation is based on the idea that the more an organisation knows about its current and prospective customers the better it will be able to target its marketing efforts to attract more customers or to create more value from its existing customers. This allows organisations gain a better return on their marketing investment and to plan more effectively for the future. This is particularly important for tourism services because the tourism market is extremely vulnerable to external events (for example the dramatic effects the media coverage of the Foot and Mouth outbreak in 2001 had on visits to the countryside in the UK) and customer loyalty is difficult to sustain over the long term.

An organisation that understands the needs and expectations of its existing and potential customers, is also in a better position to ensure that the products and, or, services that they offer are capable of meeting these needs and expectations. Market segmentation is important therefore as it can help to give organisations an advantage over competitors offering a similar product.

Segmentation is the first step in the process of designing and making plans about marketing activities ….want to know more about other steps? Click on the following link to search for courses available in the East Midlands
http://www.yourfuture-eastmidlands.co.uk