Final answer:
Potential pitfalls associated with market segmentation include overlooking the heterogeneity within segments, failing to adapt marketing strategies to different segments, and not considering the potential for cannibalization.
Step-by-step explanation:
One of the potential pitfalls associated with market segmentation is overlooking the heterogeneity within segments. This means failing to recognize the individual differences within a particular segment and treating all members of the segment as homogenous. It is essential to understand that even within segments, there can be diverse needs, preferences, and behaviors that need to be addressed.
Another pitfall is failing to adapt marketing strategies to different segments. Each segment may require a unique approach in terms of advertising, product positioning, and promotional activities. One size does not fit all, and disregarding this can lead to the failure of marketing efforts.
Additionally, not considering the potential for cannibalization is a potential pitfall. Cannibalization refers to when the introduction of a new product or service within a segment results in the reduction of sales of an existing product or service within the same company. It is crucial to evaluate and manage this risk when implementing market segmentation strategies.