One of the aspects that have propelled the Nokia Company to its recognizable success is proper market segmentation. Market segmentation is of critical importance for any company that intends to succeed in the industry. Modern business strategies have moved far beyond the old strategy of producing products targeting everybody in the market. The old marketing theme that “one size fits all” has proved ineffective compelling businesses to undertake a rigorous study of the market and identify a potential niche that they can satisfy effectively. Market segmentation has its basis on the fact that the entire market is comprised of numerous small segments whose needs and features are different. This paper will focus on describing market segmentation concepts and how the Nokia Company applied these concepts propelling itself to immense success (Hassan & Craft 2012, p.Market segmentation is one of the approaches used by many business farms in the modern day to market their products. The concept of segmenting the market emerged to replace mass marketing, which viewed the market as a single unit with similar needs. Contrary to such an approach, market segmentation appreciates the fact that the entire market is comprised of smaller segments with each segment exhibiting different features. The focus of business farms is to identify one of these segments and understand its needs and expectations critically. After understanding the needs of the market segment, the company can then launch products that target the specific segment. Marketing strategies used to promote such products suit the identified market segments (Hassan, Craft, & Kortam 2003, p. Successful market segmentation is comprised of numerous steps. The first step is the recognition that users of products and their unique needs define the market.After the recognition that the market has a diverse range of users, who have different needs, business firms focus on dividing the market into segments of the users. Usually, the division has its basis on the defining characteristics of the individuals in each group as well as their exhibited consumer behaviours. There is a salient need for rigorous research prior to effecting market segmentation. This is because business farms need to identify the consumer behaviour of different groups in the market as well as the factors affecting their buying behaviours. In the specific case of consumer markets,
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