Target Market

A target market is the set of customers sharing common needs, wants & expectations that a business tries to sell to.

Selecting the target market is one part of the marketing strategy process, and should normally follow an analysis of the available market segments.

There are three main kinds of approaches to market targeting:

Mass marketing (undifferentiated)

• Business targets the WHOLE market, ignoring segments
• Products focus on what customers need and want in common, not how they differ

Segmented (differentiated)

• Business target several market segments within the same market
• Products are designed and targeted at each segment
• Requires separate marketing plans and often different business units & product portfolios

Concentrated (niche)

• Business focuses narrowly on smaller segments or niches
• Aim is to achieve a strong market position (share) within those niches

Some examples of these three approaches to targeting a market are provided below