Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. It can be the key to a small business’s success.
The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective. It provides a focus to all of your marketing activities.
So if, for instance, I open a catering business offering catering services in the client’s home, instead of advertising with a newspaper insert that goes out to everyone, I could target my market with a direct mail campaign that went only to particular residents.
While market segmentation can be done in many ways, depending on how you want to slice up the pie, three of the most common types are:
- Geographic – based on location such as home addresses;
- Demographic – based on measurable statistics, such as age or income;
- Psychographic – based on lifestyle preferences, such as being urban dwellers or pet lovers.
If you’re interested in target marketing, the first step is to do the research that will help you define and zero in on your market. How to Find and Sell to Your Target Market will help you get started.
Also Known As: Niche marketing.
Common Misspellings: Targit marketing, target markiting.
Examples: The target marketing example above is an example of how demographic market segmentation could be used.