What is meant by Market Targeting?

Market Targeting − Definition

A corporation cannot focus on all market segments at the same time. Only a few segments can be satisfied by the company.

The act of picking the target audience from the total market is known as market targeting. The target market is made up of a group or groups of purchasers who the company intends to serve or for whom the product is developed, with a price established, promotion efforts performed, and a distribution system in place.

For example, consider a sandwich shop in a suburban town that is near to a petrol station. Because of its proximity to the highway, the shop anticipates a large volume of traffic. Adults with low to moderate incomes looking for a quick but filling supper are its target market. They offer inexpensive prices and package deals on their billboards, and their marketing features race vehicles to emphasise their speedy service.

Requirements for Effective Marketing Segmentation

Companies can establish marketing strategies that are critical to their growth and development by identifying the needs for effective market segmentation.

The four requirements for efficient market segmentation are as follows −


Your market's size and purchasing power profiles should be quantifiable, which means there should be statistics available. The profiles and data of a customer give marketing strategists the information they need to run their campaigns.

Advertisements for markets with little to no data or audiences that cannot be quantified would be tough to generate. Always consider whether there is a market for the product or service your company wants to offer, and then estimate the number of potential clients and consumers in that market.


Customers and consumers can be easily contacted at a low cost if they are accessible. This aids in determining how particular advertisements might reach various target markets and how to make advertisements more profitable.

The choice of whether to publish ads online, in print, or outside the house is a good one to consider. Gather information about the websites that a given target market frequents, for example, so that you can place more adverts on those sites instead.


A significant number of people should be interested in a brand's target market. You should gather information about a consumer's age, gender, employment, socioeconomic standing, and purchasing power to precisely establish their profile.

It is pointless to try to reach an excessive number of people; you'll be squandering your time and money. However, you don't want to advertise the brand to such a tiny group that the company fails to make a profit.


Finally, your market segments must be actionable, which means they must be useful. A market segment should be able to respond to a marketing plan or program with easily measurable results.

As a company owner, you must determine which marketing methods are effective for a specific market niche. Once those plans have been developed, consider if the company is capable of implementing them.

Types of Market Targeting

Market targeting tactics can be divided into four categories. They are as follows −

Mass Marketing (Undifferentiated Marketing)

This method is also known as mass marketing. The business decides to forgo market segmentation and produce for the entire market under this strategy. It is appropriate for clothing and other necessities like food.

This strategy focuses on the consumers' common wants and the items that meet those demands. The product has no one-of-a-kind characteristics or specifications. For mass production, the organization should invest a significant quantity of money.

Segmented Marketing (Differentiated Marketing)

The segmented marketing strategy is another name for differentiated marketing. It decides to target several industry target markets and create tailored items for each area. The organization expects to gain a bigger market share in each market category by supplying unique product types for each market group and wants to stabilize each segment separately. To manufacture items that satisfy all of the targeted market sectors, this method necessitates a wide range of research and development talents as well as imaginative and creative abilities.

Marketing that is differentiated is a high-cost strategy. Apart from that, it is one of the most secure production methods. If one marketing segment
fails to provide the projected revenue, the company has a few other possibilities to improve and encourage.

Concentrated Marketing (Niche Marketing)

Niche marketing is another term for concentrated marketing. The organization's concentrated marketing approach focuses on a large share of one or more tiny segments (niches). The firm intends to obtain a large market share and develop brand loyalty among customers through intense marketing. By concentrating on one or a few niches, the company hopes to have a deeper understanding of customer needs and deliver exactly what customers want from the product.

This method aids smaller businesses in concentrating their resources and generating the least amount of waste to gain a larger and greater market share.


Micromarketing strategy is tailoring a product and marketing tactic to a specific individual or location preferences. It focuses on meeting the demands of specific, distinguished customers rather than providing for everyone.

Micromarketing is classified into two types −

Local Marketing

It refers to the provision of a product or service based on the needs of a certain consumer group.

Individual Marketing

It is all about tailoring a product or service to a certain customer. One-to-one marketing or mass customization are terms used to describe it.

Organizations employ the aforementioned market segmentation tactics to determine the appropriate market segmentation for their product and attempt to increase market share within that category.

Differentiated Market vs. Undifferentiated Marketing

Differentiated marketing targets a specific market, a "different" market, that is interested in purchasing a specific product. A company selling organic dog food, for example, is aiming for a certain customer: a health-aware, animal-loving, and environmentally conscious individual.

Undifferentiated marketing, on the other hand, is intended to appeal to a wide spectrum of clients. A company that makes soft drinks and sells them to thirsty people is an example of this. The marketing effort is not distinctive or specialized; its primary purpose is to reach as many people as possible.

When a mobile phone maker produces multiple models under one brand, this is an example of differentiated marketing. While the corporation will market mobiles with good cameras and designs for the young consumer group, it will market cheaper mobiles with good batteries for the working class. Undifferentiated marketing is when a mobile phone company produces only one variation of the phone that applies to all market segments without distinguishing between them.


The target market refers to the segments that the company wishes to service, and the process of identifying the target market is known as market targeting. Market segmentation is the process of separating a large market into smaller segments or components.

Segments can be created based on consumer or product attributes, or both. After the market has been segmented, the organisation must assess the various categories and determine how many and which to target. It is just the act or process of deciding on a target market.