- Identify and classify the total target population into ‘mutually exclusive and collectively exhaustive’ segments or groups.
- Enables Targeted Marketing Activities:
- Maximize M-ROI: by classifying segments based on potential (both size and relevance), demographic profile and media habits.
- Enables Tactical Resource Allocation:
- Product Planning: by determining what price different groups of consumers are willing to pay or can afford. Segmentation allows you to serve each segment at a price level its members can afford. For e.g. different vehicle trims for different segments.