Advantages And Disadvantages Of Customer Departmentation

Advantages Of Departmentation By Customers

Followings are the major benefits of customer departmentation:

1. This type of departmentation emphasis on customer satisfaction by providing  better products and services.

2. Product departmentation identifies key customers, their needs and tastes and try to satisfy them.

3. Product departmentation ensures expertness and specialization to benefit customers.

4. Product departmentation adopts different environmental changes according to the situation.

5. Managers are more responsible of each departments and products.

6. Customers departmentation create goodwill and good image in front of the clients.

Disadvantages Of Departmentation By Customers

Followings are the major drawbacks for customer departmentation:

1. It is very difficult for top management to maintain proper coordination between different departments and functional areas.

2. In customer departmentation, there is high chance of duplication of different activities.

3. There is a chance of staffs being idle in this type of departmentation. 

4. Due to over focus on customers satisfaction, there is possibility of wastage of other resources of organization.

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