Question

Discuss how market segmentation can function strategically and provide an example - look at companies like Gap, Luxottica, Williams Sonoma, and Unilever for inspiration!

Answer 1

Market segmentation when function strategically, organizes the customer base based on the business goals and vision. It strategically organizes demographic, geographical, behavioral, psychographic, etc. into different segments. Segmentation of market divides or break down the target market into segments which are smaller and the more manageable ones.

Example -

GAP focuses on the casual styling of the customers and the segmentation of the company is based on behavioral, geographic, demographic, and psychographic segmentation so that it's products can meet the needs of the customers in the world competitive market.

Hope this helps :)