TARGETING

 Target Market:

 A target market is a group of customers within a

business's serviceable available market at which a
business aims its marketing efforts and resources. A
target market is a subset of the total market for a
product or service.
 Targeting

 Targeting in marketing is a strategy that breaks a large market

into smaller segments to concentrate on a specific group of
customers within that audience. It defines a segment of
customers based on their unique characteristics and focuses
solely on serving them.

 Instead of trying to reach an entire market, a brand uses target

marketing to put their energy into connecting with a specific,
defined group within that market.
 Why Targeting is important?

 Targeting in marketing is important because it’s a

part of a holistic marketing strategy.
 When your company focuses on target market
segmentation, you can do the following:
 Speak directly to a defined audience.
 Brands that have a large, varied market of
customers often find it difficult to create marketing
campaigns that speak directly to their audience. 
 Because their viewers are very different, few
slogans or stories appeal to each person on a
personal level.
 Through target marketing, you can focus on
crafting messages for one specific audience.
 Attract and convert high-quality leads.
 When you speak directly to the people you want to
target, you are more likely to attract the right
people.
 Your marketing will more effectively reach the
people most likely to want to do business with you.
 Differentiate your brand from competitors.
 When you start focusing on a smaller segment of
the audience, you also start to stand out from
competitors in your industry.
 When customers can clearly identify with your
brand and your unique selling propositions, they
will choose you over a competitor that isn’t
specifically speaking to or targeting them.
 Build deeper customer loyalty. 
 When you reach out to your customers on a more
personal, human level it creates longer-lasting
relationships.
 When customers identify with your brand and feel
that you are addressing their specific needs, they
will likely be more loyal to your brand and
continue to do business with you over a longer
period of time.
 Improve products and services.
 When you have a deep understanding of your target
audience, you can put yourself in their shoes and
see how you can improve your offerings.
 Stay focused.
 Target marketing allows you to get more specific
about your marketing strategies, initiatives, and
direction of your brand.
 It helps you clarify your vision and get everyone in
the organization on the same page.
 This focused approach helps you fully optimize
your resources, time, and budget.
 There are three aspects in targeting – evaluation,
selection, and coverage.
 Evaluation of Segments:
 Following criteria may be applied to determine the
attractiveness of a segment
 Profitability: the company must do a cost-benefit
analysis to find out the profitability of the segment.
Information needs to be collected regarding Sales
Volumes, Distribution costs, Promotion costs, Sales
revenues, Profit margins.
 Attractiveness: the attractiveness of a segment
most often depends on the number of competitors
already present in the segment.
 Growth Rate: the growth rate of the segment in
terms of growth in population, rise in purchasing
power, and increase in preference for the use of the
product must be considered.
 Company Objectives: A company should evaluate
the segment with reference to their short-term and
long-term objectives.
 Limitations: A company should examine whether
the entry into the segment is acceptable to the
society and government.
 Selection of Segments
 Selection of segment can be made by rating the
alternative segments on a predetermined scale in
respect of Profitability, growth, Competition,
Company objectives, and limitations.
 Coverage of Segments
 Organizations can choose between four alternative
coverage strategies to suit their segmentation
approaches:
 Undifferentiated market coverage: where the
consumer preferences are homogeneous and there is
no need for segmentation.
 Here a large market is available for targeting and
marketers design an undifferentiated offer to attract
consumers.-mass marketing strategy
 Differentiated Coverage: when segmentation is
necessary.
 The company identifies differences between segments
and tries to match the market offer to the expectations of
each segment.(micro marketing strategy)
 This type of coverage entails:
 - strong identification of the company in the product
category.
 - More costs but higher sales.
 - More loyal customers
 Selective segment coverage (Niche Coverage): A
niche is a small group with a distinct set of traits,
where the members seek a special combination of
benefits.
 Eg: pregnant women

 Tailored to each customer ( customization strategy)

 Tailored or one to one marketing.eg: builders/
doctors/teachers etc