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What is the market segment and target market

What is a segment of the market and target market

Market Segmentation and definition of target segments - one of the key marketing objectives.

This allows the company to concentrate its efforts on strategically important business area and increase the effectiveness of marketing policy.

market segmentation

Market segmentation - a required elementStrategic Marketing. Market segmentation is a process of dividing the market into segments (or groups) of consumers according to certain criteria. His goal - focused regulation and the implementation of targeted marketing policy.
As a market segment appears homogeneousgroup of consumers, similarly responsive to marketing activities (advertising, distribution channels). The objects for the segmentation of the market are not only consumer groups, but also groups of products and companies (competitors).
Segmentation is performed on certaincriteria, by which is meant signs, which are different consumers or combined into a group. It can be geographical (region of residence, population), demographic (age, gender), psychographics (lifestyle, personal qualities) and socio-economic (education, income, profession). The criteria for segmenting customers in industrial markets can serve the industry consumers (oil and gas, metallurgy and so on.), The size of enterprises or ownership of enterprises.

Target market

Market segmentation is made specifically forselection of the target market. This is a homogeneous group of people united by common features. As a unifying traits can act completely any characteristics. For example, as the target audience may make men aged 30 to 35 years, traveling and actively involved in sports.
The target market can also be defined asthe potential market for the firm. The main distinguishing feature of the target audience is that they are more likely to acquire the company's products and have sufficient resources for this purpose and possibility.
When determination takes into account a number of target marketcriteria. In particular, it analyzes the size and carrying capacity. The latter implies not real consumption, and the potential maximum sales. It is important to evaluate the overall segment and prospects, as well as the presence of points for the growth of consumption.
Another criterion is the availability of a segmentto address the impact of the company, ie the possibility of establishing sales for this group of consumers and the cost of supplies. It takes into account, and the state of competition in this market segment, preference is given to unsaturated market niches. Of course, it should be taken into account when choosing a target audience rate of return or profitability of the market segment.

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