Difference Between Market Segmentation And Target Market
The whole basis for the business, irrespective of what it actually is, starts from marketing segmentation and learning as much as possible about the target market. Target marketing and market segmentation are actually 2 steps of marketing procedure. Though, the two always go hand in hand, many differences exist between them, one of them being market segmentation should happen before target market is figured out. |
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The process of market segmentation takes place when an organization makes a decision that they need to recognize a particular consumer type to which the service or product can be promoted. On the other hand, target market is pinpointed once the organization finds out which category of users to vend to.
Market segmentation process is utilized to conduct research on entire marketplace, and then, put customers into different groups based upon common traits. The organization settles on which customer group is suitable, and then decides to sell to them, which is indirectly known as target marketing. Furthermore, the process of market segmentation is based on certain variables, including demographics (which include income, education, age and gender), psychographic characteristics, geography, or the variables based upon personality and lifestyle.
To be more specific, market can be targeted in many different levels; the firms can choose to target closely (micromarketing), largely (undifferentiated advertising) and somewhere in-between, concentrated or differentiated marketing.
In all, advertising a product or service through marketing, also referred to as positioning can never be executed properly before the market segmentation procedure happens, and target market is determined.
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Difference Between Market Segmentation And Target Market
