Pacific Business Daily

The diffrenece of target market and market segmentation?

what are the diffrenece and can i get some details..

Public Comments

1. Target market: The target market is a defined segment of the market that is the strategic focus of a business or a marketing plan. Normally the members of this segment possess common characteristics and a relative high propensity to purchase a particular product or service. Because of this, the member of this segment represent the greatest potential for sales volume and frequency. The target market is often defined in terms of geographic, demographic, and psychographic characteristics. http://www.mplans.com/gm/index.cfm Segmentation: # Division of the market or population into subgroups with similar motivations. Widely used bases for segmenting include geographic differences, personality differences, demographic differences, use of product differences, and psychographic differences. http://www.onlinewbc.gov/docs/starting/glossary.html # The process of defining the socio-economic characteristics of the demand for a specific property. http://www.new-york-new-york-real-estate.com/m2.html # Analyzing sub-markets within a greater market. http://www.realestateagent-listings.com/terminology/terminology_m.htm Look to be about the same! ;-)
2. There are 3 key terms in Marketing STP (Segmentation, Targeting, Positioning) Market segmentation is the process of dividing the market into subsets such a way that each of the subset is distict from others and share fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. Note:- Underline the points- distincy from others and homogenous in needs. Target market is the segment of the market that you are interested in. How do u choose target market? Having done segmentation, you need to evaluate each segment interms its opportunities and threats and weigh against yout strengths and weakness and select the best one and that best one is your target market. The concept of target market is very essentail for brand building of a newly formed company.