Targeting consists, for a company, in choosing a market segment to which it will address itself. In other words, choosing a group of people (B2C) or companies (B2B) to whom it will address its offer.

We explain the different targeting strategies. 👇🏻

What is targeting ?

Targeting means choosing one or more groups of people (in B2C) or companies (in B2B) to whom the company will address its offer (good or service) and its communication.

It’s a question of choosing which segment/product pair to focus on. The aim is to put in place a product policy that is effective because it is tailored to one or more specific segments.

The choice of segment can be based on various criteria. For example, in B2B :

  • Turnover, growth rate, number of companies or individuals in the segment.
  • The company’s ability to penetrate this market: sufficient production capacity (if B2B), logistics, financial strength, sufficient sales force, etc.

The targeted segment(s) must correspond to the company’s objectives and strategy, and be the most attractive in the long term.

How do you target successfully ?

One of the main mistakes you can make is to target a large number of segments in order to sell more: you think that by targeting a larger number of prospects, you will sell more product.

And that’s a very tempting strategy. But unfortunately it’s doomed to failure: the opposite always happens (you sell less). And why is that? Because by trying to sell to a large number of prospects, you’re trying to adapt to a wide variety of profiles (high income and low income, men and women, city dwellers and country dwellers) and, in the end, you’re failing to meet everyone’s needs.

You have to choose. And to choose is to give up.

The more we concentrate our efforts on a specific target, the more profitable our efforts will be. So you need to prioritise one or two segments at all costs.

Targeting strategies

There are 3 different targeting strategies: mass, differentiated or concentrated.

Mass or undifferentiated targeting

The company does not wish to distinguish between segments and offers a single product that should satisfy almost all segments.

Example : mass consumption products: demineralised water, toilet paper.

Advantage 👍🏻
It’s economical for the company, which can then produce in large quantities and achieve economies of scale.

Disadvantage 👎🏻
Consumers will be less satisfied than with specialist products.

Differentiated targeting

Also known as multi-segment targeting. The company targets different market segments and offers a different product for each. It has an extensive range.

Example : the car industry offers different products for different customer segments: city car, family car, MPV.

Advantage 👍🏻
The company can compete more easily against competitors with a differentiated targeting strategy.

Disadvantage 👎🏻

Product multiplication => production costs increase (reduced economies of scale) as do communications costs (the company runs a different campaign for each product and corresponding target segment).

Concentrated targeting

The company offers only one product to one or two selected target segments.

Example : Vertu phones, handmade in England for the very wealthy.

Advantage 👍🏻
Specialist image (positive). Reduced production and communication costs (economies of scale).

Disadvantage 👎🏻
Risk in the event of a market downturn: not having other markets to focus on.

Some resources related to targeting

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