Business

Study Notes

Target Market

Level:
AS, A Level
Board:
AQA, Edexcel, OCR, IB

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.

Segmentation - Targeting - Positioning - Marketing Mix

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

Examples of Mass MarketingGlobal, Ubiquitous Brands
Examples of Segmented (Differentiated) Marketing: Unilever’s Product Portfolio
Example of Concentrated (Niche) Whole Foods Market & the Organic Niche

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