Market targeting is the second stage in the Segmentation, Targeting & Positioning, or STP process.
It is at this point where you will use the research and data you have collected during your segmentation activities to evaluate the commercial attractiveness of your chosen segments.
Effective market targeting will allow you to develop content and products that best serve your chosen audience and personalize experiences to suit their needs.
There are 4 market targeting strategies that you can use to assess your chosen market; the strategy you choose depends upon whether you wish to target narrow or mass segments.
This targeting strategy is the most narrow approach that you can adopt. A micro-market targeting campaign will aim to target a small group within a niche market. To use this technique, you must identify your hyper-targeted market by a key characteristic such as job title, age or geography.
A niche market is a subset of a larger market with its own unique characteristics, preferences, and needs. Niche marketing targets one or more segments identified within the larger market.
Otherwise known as ‘segmented’ marketing, a differentiated approach isolates a number (usually 2 or more) primary segments that have the most potential for a return on investment for the company. Once target segments are identified, a different strategy for each segment is deployed.
Generally known as ‘mass’ marketing, undifferentiated marketing targets all consumers within the market. With undifferentiated market targeting each audience member is treated exactly the same and targeted with the same communications. It is a wholly untargeted approach.
There are benefits and drawbacks to each approach, so understanding which method is right for your brand is the most important element of the market targeting phase. Before you decide on an approach, make sure you have considered the following: