There are two major segmentation strategies which are followed by marketing organisations:-
1.Concentration strategy - Here, the company focuses on a particular segment of the market. In this segment, company puts all their marketing efforts to just one segment with the help of only one marketing mix. This strategy has an advantage as it focuses on the needs and wants of a specific segment. But, it also has a disadvantage as if demand of that segment will tend to fall, the sales and financial position of the company will be affected .
2.Multi-segment strategy - Here, the company focuses on two or more different market segments. They apply their marketing efforts by using different mix in these segments. As more marketing programs are being developed here, they have an advantage of increased sales. But, as more customers are targeted at the same time, it's disadvantageous as the costs are high.
