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:
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[?]).
see also: marketing, market segment, positioning, Crossing the Chasm
