A target market is the market segment which a particular product is marketed to. It is often defined by age, gender and/or socio-economic grouping.
Targeting strategy is the selection of the customers you wish to service. The decisions involved in targeting strategy include:
- how many segments to target
- which segments to target
- how many products to offer
- which products to offer in which segments
There are three steps to targeting:
- market segmentation
- target choice
- product positioning
Targeting strategy decisions are influenced by:
- market maturity
- diversity of buyers needs and preferences
- the company's size
- strength of the competition
- the volume of sales required for profitability
Targeting can be selective (eg.: focus strategy, market specialization strategy or niche strategy), or extensive (eg.: full coverage, mass marketing, or product specialization).
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