Strategies in Target Market Selection for Effective Marketing Success

Introduction to Target Market Selection Process

The target market selection process plays a pivotal role in a company's marketing strategy. It involves a series of major steps that consider the characteristics of the target market, product attributes, and organizational objectives and resources. In this essay, we will explore these steps and delve into the three basic targeting strategies: undifferentiated, concentrated, and differentiated targeting.

Three Basic Targeting Strategies

Undifferentiated Targeting Strategy

The undifferentiated targeting strategy is characterized by defining an entire market for a particular product as its target market.

This approach entails developing a marketing mix that appeals broadly to the entire market. By adopting an undifferentiated strategy, a company seeks to cater to the collective needs of diverse consumers within a given market.

Concentrated Targeting Strategy

In contrast, the concentrated targeting strategy focuses on a specific market segment using one marketing mix. The goal here is to design a marketing mix that precisely matches the needs of consumers within that single segment.

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This strategy allows for a more targeted and specialized approach, tailoring the product or service to the specific demands of a particular group of consumers.

Differentiated Targeting Strategy

The differentiated targeting strategy involves targeting two or more segments by developing a unique marketing mix for each. This strategy acknowledges the diverse needs of different consumer segments and aims to satisfy those needs through customized marketing approaches. It allows companies to tap into multiple markets simultaneously, acknowledging and addressing the variations in consumer preferences.

Segmentation Variables

Once an organization decides on a targeting strategy, the next step is to determine which segmentation variable to use.

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Segmentation variables are the characteristics of individuals, groups, or organizations used to divide a market into segments. Key variables include geographic, psychographic, and behavioristic factors, which help in creating distinct segments based on relevant criteria.

Market Segment Profiles

The development of market segment profiles is the third step in the target market selection process. These profiles describe the similarities among potential customers within a segment and explain the differences among people and organizations in different segments. Crafting detailed profiles is essential for understanding the unique characteristics and preferences of each identified market segment.

Evaluation of Relevant Market Segments

Following the creation of market segment profiles, the fourth step involves evaluating relevant market segments. This analysis considers factors such as sales estimates, competitors, and estimated costs associated with each segment. It is a critical phase that guides the decision-making process, helping marketers identify segments that align with organizational goals and resources.

Selecting the Specific Target Market

The final step is to select the specific target market. This decision hinges on whether there are enough differences in customer needs to warrant the use of market segmentation. It involves a thorough evaluation of the potential impact on sales, competition, and costs. This critical step sets the direction for the marketing efforts that follow.

Advantages and Disadvantages of Targeting Strategies

Concentrated Targeting Strategy

While the concentrated targeting strategy offers advantages such as the ability to develop a satisfying marketing mix for a specific market portion and specialization in a product, it comes with disadvantages. Dependency on a single market segment makes a company vulnerable if demand for that segment declines. It's a strategy that requires careful consideration of the risks involved.

Differentiated Targeting Strategy

The differentiated targeting strategy, with its focus on targeting multiple segments, offers advantages such as increased sales in the aggregate market and the absorption of excess production capacity. However, it also poses challenges, as the strategy demands more in terms of production processes, materials, and human resources. The higher production costs associated with differentiation are factors that need to be carefully weighed against the potential benefits.


In conclusion, the target market selection process is a nuanced and crucial aspect of marketing strategy. Organizations must navigate through various steps and considerations to identify and reach their desired consumer base effectively. Whether opting for an undifferentiated, concentrated, or differentiated targeting strategy, each approach comes with its unique set of advantages and disadvantages. Making informed decisions at each step of the process is essential for creating a robust marketing strategy that aligns with organizational objectives and maximizes success in the chosen target market.

Updated: Jan 02, 2024
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Strategies in Target Market Selection for Effective Marketing Success. (2023, Mar 10). Retrieved from

Strategies in Target Market Selection for Effective Marketing Success essay
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