Market Segmentation: A market is divided into smaller segments based on distinct needs, characteristics or behaviors of the consumers. The divided markets most probably require separate products or marketing strategies. A market segment consists of consumers who respond in a similar way to a given set of marketing efforts. For example: In the bed market, consumers who want biggest, most comfortable bed regardless of price make up a segment whereas consumers care mainly about price make up another segment.
The importance of market segmentation is to design a marketing strategy that precisely matches the expectations of consumers in the targeted segment. Next is to lessen risk in determining where, when, how, and to whom a product, service, or brand will be marketed. It is also an effective method to Increase the marketing efficiency by directing effort specifically towards the targeted segment in a manner consistent with that segment’s characteristics and features.
Market Targeting: Market targeting is to select the segment to enter by evaluating the attractiveness. Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve. For example: Disney cruises target families with young children while single cruises target unmarried adults. Company with limited sources will serve customer segments that major competitors overlook. Then, a company might also serve several related segments- perhaps those with different kinds of customers but with the same basic wants.
For example: Firebombed & Fitch (A) is an American retailer who targets college students, teens, and kids with same laity of casual clothes and accessories. Market Positioning: It Is an arrangement of a product to occupy a clear, distinctive, and desirable place to compete products In the minds of target consumers. It can also be defined as an action of linking uniqueness or strength to the brand. For example: People will relate Alarm Asia with cheap flights automatically. It Is begins with differentiation which Is a method employed by marketer to create a strong presence for their products In particular market.
Differentiation can be done by producing several variations on a Asia product to be marketed under the same brand so that to give wider range of coverage and promote a sense of dominance within the market. Products usually can be differentiated by logo, slogan, brand or even chairman of the Involved company. For example: Apple’s product can be differentiated from Samsung once It Is linked to Steve Jobs. A good positioning strategy elevates the marketing efforts and helps a buyer move from knowledge of a product or service to Its purchase. (http://en. Whelped. Org/wall/ Procurable_&_Fltch) Principles of Marketing text book