What is the difference between product differentiation and market segmentation?
Product differentiation and Marketing segmentation are two different approaches leading towards the satisfaction of a company’s objectives. Both the approaches are related to each other but the process of their application is different.
In this process, the company has a highly developed R&D team which works on innovative products, taking care of the future needs of customers. The company then makes the marketing mix and then creates its target market. Thus, the need of customers is created. It is the latent need which is being recognized by the marketers.
Herein, the market research department is very strong. The market is first segmented on various attributes. Target segment is decided, marketing mix is strategized and then finally the product offering is made. This process focusses on the current needs of the market and by satisfying these needs the company can earn maximum profit.
