Are the results of segmentation and target marketing harmful or beneficial for society as a whole?

Question

Should these criticisms be of concern to firms?

Answer 1

Segmentation and target marketing allow firms to efficiently and most effectively serve the best interests of a group of customers. This creates the best circumstances for all concerned.

Capital efficiency of this type is most effective in creating wealth for all citizens and maximizing the use and productivity that each person can bring to the table.

Target markets that are underserved don't remain so for long because of the profit opportunities that result from serving the market.

Everyone understands and implements this principle with regard to their own "marketability". Who would refuse an equal job that pays more money? NO ONE. This is an effort to bring efficiency and effectiveness to each employee's "target market".

Specialists make more money that general practioner doctors and are better trained at a smaller number of procedures. This is target marketing and efficiency at its best. The same can be said of relief pitchers in baseball, lawyers, Fedex and UPS, Victoria's Secret and scores of other businesses.

One example of the opposite is the post office - where they serve everyone equally and with no profit motive. The result is: incredibly poor service for everyone who uses USPS.

The only people who fail to benefit under this system are the ones who don't work or who refuse to improve themselves. The popular press will never say this, but it is true - if one wants to make it in America - anything is possible so long as one works at it.

Answer 2

I'm not sure which criticisms you are referring to.If you mean Segmentation by Race or any other method, then that is extremely harmful and despicable to boot. However, hopefully, I believe that you are referring to the acceptable business practice of Customer Segmentation which is, in effect, Customer Target Marketing. For example, TV Programs are carefully scheduled to take advantage of who they believe is their Target Audience. TV Soaps are usually on in the morning to attract people such as housewives [and some men] who work in the home and maybe students who are at home at that time. Other programs are scheduled to go on at Prime Time [when most of the family is home] usually thought of as evening hours, and so on. We have all received so- called junk mail which is sent with the idea that we are the correct Target Market for that product. Just about every business that has enjoyed some success has a Marketing Plan. Inside that Plan is a set of Customer Demographics, or carefully estimated categories of who is the best Target Customer for that business so that advertising funds are not wasted on sending the wrong promotion to an individual or company that obviously would never purchase that particular product. Even the smallest business, should do so, even if they do not; Target Marketing is an Art and not a precise science. In other words, companies do make errors [as to who is their target customer] but even this is a learning curve and worth the effort. There is nothing sinister about it and if you are a small business person, I highly recommend that you seriously consider Target Marketing.

Answer 3

Since target marketing limits the buying options of certain segments of society, you might say that this method is discriminatory. However, it is generally based on the past buying habits of that segment; and, since we are creatures of habit, those habits do not tend to change.

In the long run, whether we buy top-quality or medium-quality panty hose is not likely to change our lives one way or the other.