“Market segmentation is important for target markets and target markets are important for product positioning.” Elaborate with examples?

The main reason companies divide markets into identifiable groups is so that the marketing team can create a custom marketing mix for the specific group. For example, Farmer Joseph realized early on that not everyone would purchase his expensive organic produce. He did not want to exhaust his financial budget by advertising to the masses. Instead, he identified his target market and created a specific marketing plan to communicate effectively with his prime customers.

His target market consisted of females age 18-65, with an income of $50,000+, who have healthy eating habits and who are concerned about pesticides. His plan consisted of ad placement in local women's magazines, newspapers and also email blasts to a list that he formulated with age and income specifics. Lastly, he advertised with a local gym about his healthy produce. Marketers have numerous choices in how they can segment a market

Companies will not survive if the marketing strategy is dependent upon targeting an entire mass market. The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they are able to use their corporate resources more effectively and make better strategic marketing decisions

It may be defined as a process of splitting or dividing potential customers into certain groups or segments sharing similar levels of needs. The definition explains that the process is simply a division of markets into target groups. It is creating sub-sets of a market based on similar characteristics of consumers with similar demands and providing them with a product to satisfy their need in a much better way than it could have been otherwise.

Target Market is of very much importance for product positioning. 

For example: Ford is one of the best selling car when it comes to global market but the case is not the same for Indian Market, this may be because of the segmentation and product they have choosen.

I agree with the answer presented by Mr. Faizan Ahmad.

Thanks I amagree with my colleagues answers 

It's important because you need to specific the segmentation, for example you have a product that can purchased by someone that can afford it and need it, your target is for example woman, so you aim to specifically target woman age for example between- that works in good salary level, like management or senior, that is single, and more specific enjoy luxurious life style.

so, you need to establish a product that position itself among this market segment, so you require to establish a marketing plan to do that, and require to communicate it, the tough part is showing your product or service it's value and differentiate it from others, which you require to display the competitiveness of better offer, better product or service, and establish a link of understanding of communicating your product or service.

of course that's an example, it could be male teenagers for sports clothes or shoes, or even companies for engineering equipment, that works in Oil refeninery, or simply consulting service for companies that starting new that can afford it, it doesn't not have to be the segment to be specific on female only, it varies on product and specification of the target

I agree with the answer, Mr. Tariq

I agree with the expert answer here

A good answer by Mr : Faizan Ahmad  

Sorry, I don't have knowledge

There may be theoretically 'ideal' market segment but in reality, every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments. The market segmentation and corresponding product positioning or differentiation strategy can give a firm a temporary commercial advantage. However, most market segmentation(s) are the techniques used to attract the right customer.

In essence, the marketing objectives of  segmentation analysis are:

·        To reduce risk in deciding where, when, how, and to whom a product, service, or brand will be marketed

·        To increase marketing efficiency by directing effort specifically toward the designated segment in a manner consistent with that segment's characteristics

Market segmentation is a twofold process that includes:

1.  Identifying and classifying people into homogeneous groupings, called segments

2.  Determining which of these segments are viable target markets.

Thus, by emphasizing a segmentation approach, the exchange process should be enhanced, since a company can more precisely match the needs and wants of the customer. Segmenting example: Kellogg's Frosties are marketed to children, while Kellogg's Crunchy Nut Cornflakes are marketed to adults. Both goods denote two products that are marketed to two distinct groups of people, both with similar needs (a breakfast food), traits, and wants.

While product positioning or differentiation is an effective strategy to distinguish a brand from competitors', it also differentiates one product from another. For example, a company such as Franco-American Spaghetti has differentiated its basic product by offering various sizes, flavors, and shapes. The objective is to sell more product, to more people, more often. The problem is not competition; the problem is the acknowledgment that people within markets are different and that successful marketers must respond to these differences.

Therefore, Market segmentation is important for target markets and target markets are important for product positioning because it Facilitates consumer-oriented marketing: Market segmentation facilitates formation of marketing-mix which is more specific and useful for achieving marketing objectives. Segment-wise approach is better and effective as compared to integrated approach for the whole market. And business in practice requires the marketer to find common dimensions that will allow him to view these individuals as larger, profitable segments.

Great answers by the colleagues. Nothing more to add.