which is concerned with partitioning or dividing the market into one or more segments which can be targeted by the organization for selling and marketing their products / services by developing marketing mixes which are specific to such market segments. Dividing a market into various parts / segments helps in configuration of a company’s value chain and gives a competitive edge to the organization as compared to its competitors1. Segmentation helps organizations in developing a market mix which caters to the specific needs and concerns of the customers belonging to a particular market segment and helps in offering higher value to their target customers. In economic terms, the process of segmentation can be viewed as creation of monopolistic or oligopolistic market conditions whereby organizations seek to realize the highest price that their target customers in the particular market segment are willing to pay.
Targeting refers to targeting a product to a specified market segment which comprises of customers who are most likely to consume the company’s products. Targeting helps the organizations in achieving best return on their investments, reach their core customers, gain a wider market share and achieve strategic positioning in the industry. The targeting strategies available to the marketers include2:
This involves selling a single product to the entire (mass) market and is based on the assumption that the needs and demands of the consumers to whom the product is marketed are more or less identical. For instance, products such as Colas, Burger King, K – mart etc market and sell a unique product to a mass market.
It involves selling different products to different market segments in a way which is appealing to every set of customer according to their respective market segments i.e., the marketers try to match the product with the needs of the customers in each of the identified market segment. For example, airline companies offering different services to