What is NOT a benefit of market segmentation?

Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities. This strategy allows businesses to tailor their marketing efforts and product offerings to meet the specific needs of different segments of the market.

The option mentioning higher prices across all segments is not a benefit of market segmentation. Instead of applying a uniform pricing strategy to all customer groups, segmentation typically encourages businesses to adjust their pricing based on the value perceived by different customer segments. Organizations may choose to charge premium prices for specialized products tailored to higher-end segments while offering more affordable options for price-sensitive consumers. Therefore, segmentation does not inherently lead to higher prices across all segments; it allows flexibility in pricing strategies to optimize revenue from each distinct market segment.

In contrast, market segmentation leads to increased customer satisfaction as businesses can address specific needs more effectively. It also enables more targeted marketing strategies, ensuring that marketing messages resonate better with each segment. Lastly, segmentation enhances resource allocation, as companies can focus their marketing and operational resources on the most promising segments, maximizing overall efficiency and effectiveness.