Market segmentation strategy refers to a given mode of arrangement in a market place. Under this arrangement, various vendors with various products are stationed in different places. Any individual that goes against the arrangement is likely to land in trouble.
The places are set out such that vendors having the same goods can stay in the same place, while those that have different goods can stay in different places. Here, the sellers dealing in the selling of clothes and other garment are placed on their own. Those having shoes, fruits, vegetables, spices, and machinery among other things, are also situated in very different places. This does not allow for mixing of commodities at any one point.
There are many ways in which the segmentation can be done. In very well developed countries, there may be well built and well established stalls where particular people ate located. In third world countries however, the sectioning may be a bit primitive, comprising of sections separated by iron sheets.
This practice may be endorsed by the government. Here, the task is conducted by the local authorities. These ones set out to go segment the noted selling places and clearly setting out where each commodity should be situated. Regular checks are then conducted and anyone found breaking the set rules is fined heavily. When it is in the case of selling places in very local places that are not under any local authorities, then the people using the market may just decide to set local rules amongst themselves.
There are very many reasons as to why most places ad opt this organization or arrangement in their markets. Majority do so because they admire order. With the stalls in place and clearly labeled, people do not go through all the stalls trying to find what they are looking for. They only have to walk to particular places, shop and go back home.
The merits associated with the sectioning are also several. Given that people selling a given commodity are situated in a place known to all people, people then can be able to run their activities much easily. This is because no single individual would spend so much time on searching for a commodity because all he has to do is walk to the specific stalls and make their purchases. Also, it keeps the various commodities from any contamination by other goods.
The demerits however are also there. If a vendor is selling a particular product, she is only supposed to stay in that stall for as long as she keeps dealing in the same commodity. This may not turn out very good. Keeping the sellers in one place limits their interaction with other vendors, hence cannot even share ideas on how to diversify their services and products.
Market segmentation strategy as a common practice in many countries has greatly brought order. Things are running more smoothly than they were before the arrangement. Also, the order adopted here has even been transferred to other places. As such, these places have even experienced more development.
The places are set out such that vendors having the same goods can stay in the same place, while those that have different goods can stay in different places. Here, the sellers dealing in the selling of clothes and other garment are placed on their own. Those having shoes, fruits, vegetables, spices, and machinery among other things, are also situated in very different places. This does not allow for mixing of commodities at any one point.
There are many ways in which the segmentation can be done. In very well developed countries, there may be well built and well established stalls where particular people ate located. In third world countries however, the sectioning may be a bit primitive, comprising of sections separated by iron sheets.
This practice may be endorsed by the government. Here, the task is conducted by the local authorities. These ones set out to go segment the noted selling places and clearly setting out where each commodity should be situated. Regular checks are then conducted and anyone found breaking the set rules is fined heavily. When it is in the case of selling places in very local places that are not under any local authorities, then the people using the market may just decide to set local rules amongst themselves.
There are very many reasons as to why most places ad opt this organization or arrangement in their markets. Majority do so because they admire order. With the stalls in place and clearly labeled, people do not go through all the stalls trying to find what they are looking for. They only have to walk to particular places, shop and go back home.
The merits associated with the sectioning are also several. Given that people selling a given commodity are situated in a place known to all people, people then can be able to run their activities much easily. This is because no single individual would spend so much time on searching for a commodity because all he has to do is walk to the specific stalls and make their purchases. Also, it keeps the various commodities from any contamination by other goods.
The demerits however are also there. If a vendor is selling a particular product, she is only supposed to stay in that stall for as long as she keeps dealing in the same commodity. This may not turn out very good. Keeping the sellers in one place limits their interaction with other vendors, hence cannot even share ideas on how to diversify their services and products.
Market segmentation strategy as a common practice in many countries has greatly brought order. Things are running more smoothly than they were before the arrangement. Also, the order adopted here has even been transferred to other places. As such, these places have even experienced more development.
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