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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