“The appeal of segmentation has a lot to do with efficiency,” said Gordon Wyner, a partner at Millward Brown Analytics and member of the executive committee at the Marketing Science Institute.
Wyner said in a report that companies often choose to divide their target market into segments to maximize their resources and achieve the most results from their marketing efforts.
This makes sense, he said because segmentation can simplify and synthesize competing ideas and approaches to building brand awareness and catalyzing purchase and consumption cycles.
Further, it can create an “architecture for implementation” by providing companies with a reference point for identifying the most relevant media and sales channels that will help them achieve their business goals.
Additionally, Wyner said the approach can motivate the organization “to act in ways that improve the long term health of the brands.” A strategic roadmap that uses segmentation as a tool allows corporations to achieve its short term targets across its portfolio of brands while pursuing long term market development, he added.
