Study Notes
Target Market
- Level:
- AS, A-Level
- Board:
- AQA, Edexcel, OCR, IB
Last updated 22 Mar 2021
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.
![](https://tutor2u-net.imgix.net/subjects/business/diagrams/marketing-strategy-process-overview.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
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
![](https://tutor2u-net.imgix.net/subjects/business/diagrams/target-market-mass.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
![](https://tutor2u-net.imgix.net/subjects/business/diagrams/target-market-differentiated.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
![](https://tutor2u-net.imgix.net/subjects/business/diagrams/target-market-niche.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
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