Know-How Exchange : Student Questions

Hi- You have actually answered your own question:
Target Market Process starts with Identifying markets with unfulfilled needs and the next step is Determining market segmentation among THAT Target market- so Target Mkt is a part of the universal set & Market Segment will be a smaller part of that target market.

You are not wrong. Your interpretation is common and makes sense.

I think shghosh pretty much hit the nail :)

Just being cheeky, this is the analogy I used to explain to my peers on segmenting and targeting:

Assuming the market as a whole is all the chicks in you University.

Segmenting will be trying to group them together. In my silly case: Asian chicks, European chicks, or go even further chicks with blonde hair, nice body etc..

Targeting: Choose a specific group that you want after segmenting. Say I'm asian, I'll have a competitive advantage with asian chicks - so I will try to use my 7 Ps to impress them :D

Market = Many market segments (Mkt seg A + Mkt seg B +Mkt seg C)

(Note: segmentation process can result in different market segments depending on what variables you use to segmentate them.)

Target Market = market segment you choose

(e.g I choose Mkt Seg A and and I will call it my target market)

therefore,

Market= (MY target market) + Mkt seg B + Mkt seg C

Hope that helps.
Benny