Advantages and Disadvantages of Market Segmentation

Advantages of Market Segmentation

1. Market segmentation saves business resources and supports better business strategies.
2. It cuts costs by focusing on the right customers and making better use of budgets.
3. It helps teams avoid wasted effort and focus on what matters for better results.
4. It makes sure resources are used wisely to create plans that lead to long-term success.
5. It reduces risks by focusing on proven customer groups with predictable outcomes.

Disadvantages of Market Segmentation

1. Market segmentation divides attention and can lead to missed opportunities.
2. It spreads resources thin across different groups and makes it harder to focus on the bigger picture.
3. It can cause businesses to overlook potential customers outside the targeted groups.
4. It divides time and energy across campaigns, slowing down progress toward bigger goals.
5. It increases the risk of prioritizing one segment too much, leaving others underserved.