Definition of Market Targeting

Market targeting, also known as target marketing, is the process of identifying and selecting specific segments of a broader market to focus a company’s marketing efforts on. This involves understanding and evaluating the potential customer base to determine the most appropriate and effective marketing strategies. By concentrating on a specific audience, market targeting allows businesses to tailor their advertising messages, products, or services to better resonate with their target market, increasing their likelihood of success.


The phonetic transcription of “Market Targeting” in the International Phonetic Alphabet (IPA) is:/ˈmɑr.kɪt ˈtɑr.gɪ.tɪŋ/

Key Takeaways

  1. Market targeting involves evaluating and selecting the most attractive customer segments to focus marketing efforts on, based on their potential profitability and alignment with the company’s strengths.
  2. There are different targeting strategies, including differentiated marketing, concentrated marketing, and mass marketing, each catering to different business sizes and objectives.
  3. Successful market targeting requires businesses to find the right balance between reaching the target audience effectively with tailored products, services, and marketing content, and remaining cost-efficient by minimizing marketing waste.

Importance of Market Targeting

Market Targeting is a crucial component of digital marketing as it enables businesses to identify and focus on specific segments within a broader market, allowing for efficient allocation of resources, customized messaging, and tailored marketing strategies.

By utilizing market targeting, businesses can cater to the unique needs, preferences, and pain points of their target audience, thereby increasing the likelihood of conversions, fostering brand loyalty, and optimizing return on investment (ROI). Additionally, market targeting helps organizations stay ahead in the competitive digital landscape by tapping into niche customer segments and creating a strong, long-lasting connection with their audience, ultimately driving sustainable growth and success.


Market targeting serves the pivotal purpose of allowing businesses to identify and concentrate their marketing efforts on specific market segments that are most likely to reciprocate a positive response to their products or services. By honing in on a particular demographic, companies can optimize their resources and tailor their marketing strategies to effectively communicate the benefits of their offerings.

In a competitive business landscape, market targeting enables organizations to create a unique value proposition that caters to the particular needs, preferences, and expectations of their chosen audience, thus fostering a stronger connection and relationship with potential customers. The process of market targeting involves segmenting the overall market, evaluating the attractiveness of each segment, and ultimately selecting the segment or segments to focus on.

This approach helps businesses to achieve a higher return on investment (ROI) by ensuring that their marketing campaigns resonate with the right audience and generate increased customer satisfaction, conversion rates, and brand loyalty. Furthermore, market targeting facilitates the development of more accurate performance metrics, as it allows marketers to gauge the effectiveness of various tactics specifically designed for the selected target market.

In summary, market targeting plays a crucial role in refining a company’s marketing strategies, maximizing resource allocation, and bolstering the long-term success of the business.

Examples of Market Targeting

Nike’s Market Targeting for Athletes: Nike, a globally renowned sports apparel and footwear brand, has effectively targeted its market by focusing on specific segments of consumers, primarily athletes and sports enthusiasts. They develop campaigns and advertisements featuring famous athletes, catering to specific sports such as basketball, football, and soccer. This allows Nike to capture the attention of their target audience and establish itself as the go-to sports brand for both professionals and amateurs.

Coca-Cola’s “Share a Coke” Campaign: In an effort to increase personalization and directly target their core market, Coca-Cola launched its “Share a Coke” campaign. They replaced their iconic logo on bottles and cans with individual names and phrases, encouraging customers to find and share a Coke bottle with their friends and family. This clever market targeting strategy aimed at millennials allowed Coca-Cola to engage with a younger audience and boost their sales.

Apple’s Target Market for iPhones: Apple is widely known for its premium, state-of-the-art tech products and has successfully targeted a specific market segment. Their primary target audience consists of tech-savvy individuals who prioritize design, functionality, and innovation. By creating advertisements showcasing the iPhone’s cutting-edge features, sophisticated design, and seamless integration with other Apple products, the company has built a loyal brand following among its target customers, who are willing to pay a premium price for their devices.

Market Targeting FAQ

What is market targeting?

Market targeting is the process of identifying and focusing marketing efforts on a specific segment or group of consumers within the broader market. This allows businesses to tailor their products/services, messaging, and promotions towards the needs and preferences of their target audience, leading to more effective marketing campaigns and higher returns on investment.

Why is market targeting important?

Market targeting is essential for businesses to create and deliver value to their customers most effectively. Without proper targeting, businesses may waste resources on marketing campaigns that do not resonate with their intended audience. This can also lead to missed opportunities for attracting and retaining customers who are most likely to buy your products and become loyal brand advocates.

What are the different types of market targeting strategies?

There are four primary market targeting strategies: undifferentiated marketing, differentiated marketing, concentrated marketing, and micromarketing. Undifferentiated marketing targets the entire market with one marketing strategy. Differentiated marketing involves targeting different market segments with different campaigns. Concentrated marketing focuses on a single niche market segment, and micromarketing targets individual customers or localized segments.

How do I choose the right market targeting strategy for my business?

Choosing the right market targeting strategy depends on several factors, such as your target audience, product/service offering, competition, company size, and available resources. It is essential to first conduct comprehensive market research to understand your target customers’ needs and preferences. Then, analyze your business’s strengths and opportunities to determine which targeting strategy can maximize your potential for growth and success.

How can I refine my market targeting efforts?

To refine your market targeting efforts, continually gather and analyze data on your target audience and the performance of your marketing campaigns. This will help you better understand your customers, their preferences, and how well your marketing message is resonating with them. Adjust and optimize your strategy to improve messaging, targeting, and overall marketing effectiveness.

Related Digital Marketing Terms

  • Segmentation
  • Niche Marketing
  • Demographic Targeting
  • Geographic Targeting
  • Behavioral Targeting

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