Market Segmentation vs. Target Marketing: What’s the Difference?
The main difference between Market Segmentation and Target Marketing is that Market Segmentation involves dividing customers into groups based on common characteristics, while Target Marketing focuses on selecting specific groups to sell products to.
Before we move to more differences, let’s first understand Market Segmentation and Target Marketing:
- Market Segmentation: Market Segmentation is when companies divide people into groups based on similarities like age or interests to understand them better. This helps businesses know what different groups like so they can create products or services that fit those groups’ needs better.
- Target Marketing: Target Marketing is when companies focus on one specific group of people for their products or services. By understanding this group really well, businesses can make sure their marketing messages and products appeal to them and meet their needs.
Now, let’s get to Market Segmentation vs Target Marketing:
Major differences between Market Segmentation and Target Marketing
| Market Segmentation | Target Marketing |
|---|---|
| Market Segmentation focuses on dividing the market into distinct groups based on similar characteristics. | Target Marketing involves selecting specific segments to concentrate marketing efforts on. |
| Market Segmentation is about identifying different customer segments within a market. | Target Marketing is the process of tailoring marketing strategies to reach those specific segments effectively. |
| Market Segmentation divides the market based on demographics, behavior, or psychographics. | Target Marketing involves crafting strategies to reach the chosen segments with tailored messages and offerings. |
| Market Segmentation is the process of categorizing customers into groups with shared characteristics. | Target Marketing aims to appeal to those specific groups with customized marketing tactics. |
| Market Segmentation divides the market into manageable parts. | Target Marketing then directs marketing efforts towards those specific segments for maximum impact. |
So, these are the main differences between the entities.
Also see:
- Market Intelligence vs. Market Research
- External Marketing vs. Internal Marketing
- Exposure Time vs. Marketing Time
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