Negatively, though, larger firms with established access to marketing channels and better financing may be tempted to enter such an attractive marketplace. Firms already involved in the particular industry may devote considerable resources to defending or increasing their current market share. Market segmentation Almost all markets have some major and distinctive segments. Even if a market isn t currently segmented, it probably carries that potential. And, in the case of large national markets, it would be almost impossible for a small firm to be competitive unless the market were segmented.
Segmentation can come about in many ways.
Often several types of segmentation are evident. Almost all markets can be segmented by price and quality points. So price and quality issues may not form the most clear and precise definition of segmentation within a marketplace. Reasons for strong segmentation are most often found through an examination of product use and the benefits consumers derive from product use. For example, the personal automotive car market may be thought of as being divided into station wagons, sedans, pickup trucks, mini-vans, and sports cars.