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Meaning of Market Segmentation and Targeting

Market segmentation is the process of classifying overall market into several customer sections. While, targeting refers to the method of deciding a potential customer section for a business to concentrate. This is important for recognizing and targeting specific demographic group.

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Forms of Market Segmentation

  • Mass Marketing –

This is the process of promoting a product to entire market without exception.

  • Segment Marketing –

It refers to the practice of planning products and services to meet the needs of diverse target groups.

  • Niche Marketing –

This is the method applied when a company decides to focus its efforts a limited segment in the market.

  • Individualized Marketing –

This involves tailoring offers or products to fit the needs of an individual.

Types of Market Segmentation

  • Demographic

This kind of segmentation is the simplest and most widely tested, and is used to get the right population to use a company’s product.

  • Behavioral –

It is the type of market segmentation where the population is divided based on their usage, behavior, and decisions.

  • Psychographic –

In this division, a market segment is defined by the lifestyle of people, interests, activities as well as their opinions.

  • Geographic –

It is the type of segmentation which divides people on the basis of geography. This is because customers have different needs based on their location.

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