Advantages
- Customer departmentation facilitates concentration on customer need. This is in line with the customer orientation professed by man organizations these days;
- Customers feel that they have an understanding supplier. For example the manufacturer may sell to wholesalers and industrial buyers. Wholesaler requires a product of dependable quality with assured supplies. The industrial buyer wants product of high quality plus service that includes installation and repair of the product and the specific training of employees.
- Helps the organization to get the correct feel of the market dynamic in terms of preferences of the customers, competitors' strategies, etc
Disadvantages
- Difficult to coordinate operations between competing customers demands;
- Requires considerable expertise on the part of managers in understanding customers' problems and specific needs;
- There is a possibility of under utilization of facilities and employee specialized in terms of customer groups. Small organizations particularly can not afford the expenditure involved because some amount C duplication of the facilities is inevitable.
Kavungya answered the question on March 26, 2019 at 12:46
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