What is Market Targeting? Definition, Criteria, Types, and Strategies

What is Market Targeting?

Market targeting is the process of selecting the best market segment from the available segments. The best market segment includes one that has greater opportunities and that matches your firm’s objectives and resources.

Market targeting includes first segmenting the large market into different sub-markets, evaluating each of the market segments, and selecting the most profitable segment which is called the target market.

So, what is the target market? A target market consists of a specific type of consumer group to which you aim to sell your products. These consumers have unique tastes, preferences, and characteristics that differentiate them from the larger market.

Simply, understanding the targeting means concentrating the marketing efforts of a company on a specific type of customer group. This can be key for businesses to attract the right customers, increase sales, build brand loyalty, and achieve growth.

Objectives of Market Targeting

Market targeting is one of the important parts of the STP marketing model. The following are the targeting’s main objectives.

  • Attract the right customers.
  • Choose the right market segment or consumer group.
  • Design relevant marketing programs that best appeal to the target market.
  • Increase sales and profitability of the business.

Criteria For Choosing a Target Market

There will be different market segments but all will not be satisfied with the same marketing tool. In order to select the target market, you first critically evaluate and decide how many or which segment to serve so as to acquire more opportunities from the desired market.

Before choosing the target market try to evaluate available segments based on the following four criteria.

Read Also: Types of Market Segmentation

Size of Segments

The size of the market segments determines the number of customers who are likely to buy products. Usually, big companies target larger market segments, and small companies prefer small segments.

In big markets, your business may fail to satisfy all consumers whereas in small segments there will be limited demands. You should choose the size of the market segment based on the desire and capacity of your company to serve.

Growth of Segments

Growth is also one of the important factors you should consider while choosing the market segment. The segment should have growth characteristics in order to be the right target market.

With the passage of time, the segment should be able to generate more demand. If demand remains the same, it does not bring growth to your business. The growth in market segments increases companies’ sales and profits.

Structural Attractiveness

It refers to the appeal of a market segment to a business and its potential to provide long-term profit to the same. Along with the desired size and growth opportunities, the market segment should have structural attractiveness.

If the target market already has high competition, it would not be considered attractive. Structural factors of a market segment mean the long-term attractiveness of the segment. Through Porter’s five forces, the attractiveness of the segment can be assessed.

Companies’ Objectives and Resources

The segment will have desired size, growth opportunities, and structural attractiveness, but may still not match your company’s objectives and resources.

The market segment you choose should match your company’s objectives and your company should have the necessary resources to meet the demands of the selected segment.

If you can integrate all these criteria, then you can select the desired market segment, which is your target market.

Read Also: Product Positioning

Types of Target Market

There are mainly four target market types within which you can choose your desired markets.


Demographic target market segmentation devices market based on the consumer’s characteristics like age, gender, income, occupation, etc. It believes that different consumer demographics have an impact on the way they behave with brands and purchase products.

If you are aiming to sell alcohol, you should target people who are more than 18 years of age.


Under geographic target market segmentation, consumers are divided into different groups based on the area they live. Geographic factors considering which markets are segmented include county, city, region, postal code, even neighborhood, climate or weather, etc.

It believes that consumers of a particular geographic area have different product or service needs. For example, if you are selling swimsuits you should target people who live near the beaches or where it needs.


This takes into account consumers’ lifestyle preferences in a region where business plans to launch new items and execute advertising campaigns.

When determining a possible customer base, socioeconomic class, personality, attitude, interests, values, and beliefs are all important considerations under it.


Under the behavioral approach, consumers are segmented based on the behaviors they show during their purchasing process. Studying customer purchasing patterns will help you better understand how to meet consumer needs for features and usability, the two factors that influence purchases the most.

Market Targeting Strategies

So far we have discussed, what the market targeting is, what the target market is, the criteria for selecting a target market, and the types of target markets.

Let’s understand the strategies following which you can target your desired markets.

Aggregation Strategy

Aggregation marketing strategy is also called undifferentiated marketing and mass marketing. It does not divide markets based on their geography, demography, and behavioral variables rather it considers all buyers as a homogeneous group.

This market targeting strategy sells a product to the whole market. It is based on mass production, mass promotion, and mass distribution.

Segregation Strategy

This targeting strategy divides the whole market into different segments and aims to sell the products to the selected target markets. It is similar to market segmentation.

Segregation targeting strategy relies on the notion that a market consists of a variety of consumer groups and each group has unique product tastes. So, to satisfy each category of people different products should be made considering each category’s needs.

Market Concentration Strategy

Market concentration strategy focuses only on specific segments of the market. It is also called a niche market targeting strategy. It focuses on a very specific segment of the market and seeks to understand the market most appropriately.

This tactic is appropriate for start-ups or small businesses with tight budgets where corporate departments are still developing and have few employees. Massive distribution, advertising, or promotions are not necessary. Loyal clients will help the business succeed once it becomes known in the market at large.

Micro Marketing

Micromarketing includes addressing the needs and wants of individual and local consumers. Under it, local and individual marketing comes. Local marketing focuses on the needs and wants of local people whereas individual marketing markets products on an individual level.

Read Next: The 7 Ps of Marketing

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