Targeting Strategy

Posted in Marketing and Strategy Terms, Total Reads: 6958

Definition: Targeting Strategy

Target marketing encompasses three steps: segmentation, targeting and positioning. Targeting strategy is a strategy for selection of potential customers the company/ organization can sell its products/services to. There are various segments in any market. Most firms do not select all the segments in a market to operate and choose one or few of the identified segments. As mentioned earlier, targeting is this process of selection made on the basis of attractiveness of the segment.


After selection, a business/ organization that offers a wide range of products and services can decide whether to introduce a generic product (as in mass marketing) or launch different products for different segments (as in multi-segment marketing) based on the market segment’s needs and behavior.

The basic strategies to satisfy the target market are:

1. Niche/ concentrated marketing: Sometimes there could be very small but highly profitable market segment which cannot accommodate more than a few players. A company may choose to operate in such a well-defined group of customers. The idea is to gain expertise in meeting the highly specialized customer needs. For example, Sensodyne is a toothpaste for consumers with sensitive teeth. The consumer segment is small but has very specific requirements.

2. Mass/undifferentiated marketing: The idea is to sell the same generic product to all consumers. Such an idea assumes that the consumers have similar needs with respect to the particular product category. The main advantage is low cost as a result of economies of scale. For example, Tata iodized salt.

3. Selective/ differentiated marketing: A company may opt to provide different offerings to different consumer segments

A company can differentiate its product through:

a. Product differentiation (features, durability, performance, style) e.g. Apple iPhone 5 & 5c

b. Services differentiation e.g. Kingfisher Airlines’ in-flight services

c. Personnel differentiation e.g. Customer service at Pizza Hut

d. Image differentiation e.g. Zara (fast fashion, trendy)


Hence, this concludes the definition of Targeting Strategy along with its overview.


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