Market Targeting: What You Need To Know About (Definition, Purpose, And Examples)

Kayumboyev Dilmurod

Kayumboyev Dilmurod

Digital Marketer, Twitter @Davidtokyoo



Porsche 911 and Toyota Aygo, do you think these two cars are produced for the same audiences or can they fulfill these audiences’ wants simultaneously?

Of course not, Toyota Aygo is for youngers looking for budget cars, and the Porsche 911 is a sporty and luxurious car for privileged and upscale people.

The purpose of both car users may be the same for driving, but their tastes and preferences are different. Therefore, trying to satisfy all consumers with one product is daydreaming and can be the first step taken by a company toward Myopia. Here, having a comprehensive understanding of marketing targeting plays an important role.

We have already talked about how market segmentation reveals the firm’s market segment opportunities.

In this article, we will discuss the next step from segmentation is Market Targeting. The organization now has to evaluate the various segments and decide which and how many segments it can target and serve best.


What is Market Targeting?

Target MArket


Market targeting is a process of choosing the specific target market from the entire market. A target market includes a set of buyers who share similar needs and characteristics that a company decides to serve and they are most likely to buy the company’s product and service.

So, the market targeting process consists of two actions. The first step is the evaluation of existing segments, and the next step is to select the appropriate market segment that suits the business.


The Process of Evaluating Market Segments

 While assessing various market segments, an organization needs to look at three aspects: segment size and growth, segment structural attractiveness, and company objectives and resources.

Some cases need to be considered. For example, some segments in the market are large and their growth is high but they are not always the most attractive ones for every company.

The issue of not having sufficient skills and resources needed to serve larger segments and high competitiveness may make smaller companies think out. For such companies targeting smaller and less attractive are potentially more profitable. 


Selecting Target Market Segments

After the evaluation of market segments, the organization needs to pick out which and how many segments it will target. Selecting the right target market is vital and the company can implement one of four types of market targeting strategies that are Undifferentiated marketing ( Mass marketing), Differentiated marketing ( Segmented marketing), Concentrated marketing(Niche marketing), and Micromarketing ( local or individual marketing)


What are the 4 market targeting strategies?

market targeting strategies

4 types of market targeting strategies: Undifferentiated marketing ( Mass marketing), Differentiated marketing ( Segmented marketing), Concentrated marketing (Niche marketing), and Micromarketing ( local or individual marketing)


Undifferentiated Marketing

T Ford Model.


Undifferentiated marketing, also known as Mass marketing, is a strategy in which the company has only one available offer for the whole market and ignores market segment differences.

This concept allows the firm to design campaigns without conducting extensive market research to learn what their target audience wants and prefers. Such a strategy focuses on what is common in the needs of consumers rather than on what is different.

The company with this strategy aims to influence and engage as many individuals as possible at a very low cost.

Moreover, TV, Radio, and newspapers are the most preferred platforms for product promotion to achieve their goal.

The majority of contemporary marketers take issue with this tactic. Creating a brand or product that would appeal to all consumers might be challenging. Additionally, mass marketers frequently struggle to compete with organizations that are more narrowly focused on meeting the needs of specific markets and niches.

The strategy of Henry Ford was based on an undifferentiated marketing concept for T Ford Model. They started producing this model in only black color in the 1930s.


Differentiated Marketing 

This is a strategy also called Segmented marketing the firm targets several different segments and reaches its customers with different tailored marketing messages.

They offer their products based on the audience’s needs and preferences. Companies with differentiated marketing approaches generate more total sales than ones with undifferentiated ones because offering different products with tailored messages causes the company to hold a strong position in each market.

P&G products with variations, or Nike products with different campaigns for different segments can be examples of a company that has a differentiated marketing strategy.

This marketing approach is much more expensive. It requires separate marketing plans for separate segments and additional marketing research. And the production and development of many units of different products cost more than many units of a single product.


Concentrated Marketing

Concentrated marketing, or niche marketing, is a strategy in which the company tries to obtain a large share of one or fewer smaller segments, or niches.

So, its resources and efforts are targeted at the specific target market, and this concept is mostly adopted by small businesses.

The company gains a strong market position through concentrated marketing as a result of its increased understanding of consumer needs in the markets it targets and the distinctive reputation it builds. It can market more successfully by tailoring its products, prices, and programs to the requirements of properly defined target audiences.

Additionally, it can promote more effectively by focusing just on the customers it can most effectively and profitably serve through its channels, communications programs, and products or services.

Smaller businesses can concentrate their limited resources on filling niches that larger competitors would find unimportant or ignore.

Many businesses begin as nichers to gain ground against bigger, more resourceful opponents, and then develop into broader competitors. Amazon, Southwest Airlines, and Red Bull are the companies that started their business by covering small niches in the market.



Concentrated and Differentiated marketers tailor their offers and marketing campaigns to the demands of diverse market segments and niches.

However, they do not individually tailor their offers to each customer at the same time.

Micromarketing is the activity of designing goods and marketing strategies to appeal to certain consumers and regional client groups. Micromarketers perceive the individual in every consumer rather than just a customer in every person. Micromarketing includes local marketing and individual marketing.


In Conclusion

Targeting a certain market does not entail excluding those who do not meet the firm’s criteria. Target marketing, on the other hand, enables the firm to concentrate its advertising budget and brand message on a certain market that is more likely to purchase from you than other markets.

This is a lot more economical, effective, and efficient strategy to attract customers and grow their business.

Understanding your target audience is essential for marketers. Every marketing strategy and plan that the company implement will be defined by this information.

The firm can establish connections with customers and improve communications by solidly understanding its target market.The firm can create content that targets particular personas and brands that align with the preferences and ideals of individuals who are most likely to buy the product. So, the Target market must be the next step after understanding the segments in the market.


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