Target marketing is a particular market segment at which a marketing campaign is focused. When selecting a target market it is important to make sure that it fits the company’s objectives, resources, and capabilities.

There are different aspects that should be considered when evaluating your market segment. For instance; risk level, competition in the segment, the growth rate of the segment, brand loyalty of existing customers in the segment, the size of the segment, sales potential, etc. There are other market research and analysis that should also be considered like test marketing, buyer intentions, and sales potential.

Different market segments for targeting:

• Single-segment/concentrated- one market and not the entire market.
• Selective specialization/differentiated strategy- a segment that is based on its range of products instead of one market.
• Market specialization- specializes in serving one particular market segment with an array of different products.
• Full market specialization- targets the entire market. This is a mass market strategy, different segments.

If a company develops a strong competitive advantage, it may find it profitable to pursue a larger segment. Although larger segments may have more competition and not necessarily profitable.  It’s important for the company to offer superior value to the targeted segment and also get a positive return on investment.