What is the difference between segmentation and targeting in marketing?

What is the difference between segmentation and targeting in marketing?

Segmentation involves dividing a market into distinct groups based on characteristics, while targeting focuses on selecting which segments to serve.

Can you give me examples of market segments?

Sure! Examples include demographic segments like age and gender, geographic segments like region, and psychographic segments like lifestyle.

How do companies decide which segments to target?

Companies analyze factors like segment size, growth potential, competition, and alignment with their brand to decide on target segments.

What are some common targeting strategies?

Common strategies include differentiated targeting, concentrated targeting, and mass marketing, each catering to different market needs.

Why is targeting important in marketing?

Targeting is crucial because it allows companies to focus their resources on the most promising segments, increasing efficiency and effectiveness.