Posted in Marketing and Strategy Terms, Total Reads: 2007
Definition: Multi-Segment Marketing
Instead of focusing on a target market as is the usual trend of companies to better position their product, multi-segment marketing aims at the market as a whole and attempts to maximize the reach in order to generate as many sales as possible. Companies adopting this type of marketing want to take advantage of each type of customer and for that they, divide the market and try to conquer the different segments with specific messages and promotional efforts. It is also called differentiated marketing.
Shifting the focus from your primary market segment to another segment may have various implications on the business. The customers may perceive it as a sign of drop in product quality or failure of product which is forcing you to enter a different segment.The marketing efforts are also not uniform now but are spread across many segments.
For example- Car manufacturers may develop a luxury brand to attract customers who have aspirational needs and can afford it while come up with an economy brand for certain income levels. Honda Brio serves such customers while Honda CR-V is aimed at the higher end segment.