Chapter 7, Problem 1QA

Summary Introduction

To define: The meaning of market fragmentation and its consequences for marketers.

Introduction: Market fragmentation implies to emerging new segments in market with their own distinct needs, preferences and requirements. Market fragmentation for the marketer is the level of competition that is increased when the choices are being made by the consumers themselves.

Answer to Problem 1QA

The consequence of market fragmentation on marketer is the level of competition that is increased when the choices are being made by the consumers themselves.

Explanation of Solution

Market fragmentation means emerging new segments in market which own distinct needs preferences and requirements. This helps in reducing the mass marketing effectiveness technique and clears brand loyalty.

The consequence of market fragmentation on marketer is the level of competition that is increased when the choices are being made by the consumers. In market fragmentation consumers start choosing their own distinct product with their preference and requirements.

Earlier the marketers followed the concept of one universal marketing message. This marketing message reached the consumers through mass media and was based on the concept that every consumer has a need and interest. However, market fragmentation has made the marketer aware that not all people require the same product or they may be in need of a specific product but for different reasons. This has a direct effect on the marketing message that loses its universal identity. Now, the marketer has to design different and unique marketing messages for different sets of customers.

Due to market fragmentation, the marketer is now compelled to address the individual needs of the customer based on his individual preference and requirement. This is in the favor of the customer but it becomes very difficult for the marketer to present a universal image of the business entity.

The pricing strategy that existed earlier was to offer the same price across the entire consumer segment. However, market fragmentation has changed this scenario. Now, the marketer opts for dynamic pricing where the offered price varies on the basis of consumer segments, consumer purchase history, shipping duration and market conditions.