Business & Finance homework help| Business & Finance homework help
Segmentation can be a competitive advantage, or disadvantage for North American’s automobile industry in a number of key ways. Segmentation allows businesses to target certain consumer segments based upon their desires and needs. Segmentation allows companies to design customized products that can be used in niche markets. This gives them an advantage over other competitors and helps create unique selling points. Automotive companies can adjust their pricing to suit different customer groups to maximize profit without having to compromise the quality of their product.
On the other hand, segmentation could be seen as a disadvantage when it comes to entering new markets since there is often less room for experimentation with different models or features unless firms have sufficient resources available which might not always be possible due budgetary constraints etc… Additionally, fragmented customer bases tend require more marketing campaigns order reach all audiences thus having an impact upon finances allocated towards such endeavors in comparison larger single regions wherein messages unified message sent out versus multiple versions depending upon targeted demographics being advertised towards which takes additional time develop and disseminate throughout marketplaces thus potentially costing more money overall when considering margins within already very competitive industries making it difficult even gain foothold among consumers vying attention numerous car manufacturers pitching sales across spectrum styles available nowadays