Author: Victor Chee


Targeted marketing is the action of promoting and selling products or services for a specific group of consumers. This is the first and most fundamental marketing strategy used to increase sales and achieve a competitive advantage.

How it Works

Target markets are groups of people separated by their specific traits. There are many aspects that are considered within targeted marketing. These aspects may include:

Demographic: age, gender, family size, education level and occupation.
Geographic: area population, density and climate
Psychographic: consumer choices, personality, lifestyle, and purchase patterns
Behaviour: consumer needs & preferences, consumer loyalty, and purchase frequency

Video: How to Define Your Target Market: Check Out Your Competition

Once a specific target market is chosen, it is necessary to research the target market. This is usually done through the process of data analysis to reach a conclusion on the relationship between the target and goods & services. This information is then used to use the product-consumer correlation to create goods & services that will target the specific market groups in order to maximise the firm's profit. This is a commonly used marketing strategy that allows

Applications to the Case Study

Although targeted marketing is a strategy most commonly used by product producing firms, it is also a useful strategy used by supermarkets. In many large supermarkets, data is collected on the consumers of their products. These supermarkets use the data to analyse the relationship between consumers and purchasing patterns in order to determine certain conclusions from the analysis. The information provided allows supermarkets to make decisions in product bundles and advertising. For example, instead of selling peanut butter individually, some supermarkets will decide to wrap peanut butter and strawberry jelly in a set in order to target a specific group of consumers that have a preference of eating peanut butter and jelly sandwiches. Targeted marketing can also be used for advertising and categorising. Once the supermarket has studied the target market thoroughly, this will allow the supermarket to make decisions on what type of advertising and categorisation will be suited for the consumer and the product. A good example is how action figures will be put in the 'kids' section because they are targeted for kids. A good example of a real-life successful targeted analysis by the firm Target is: "How Target Found Out A Teen Girl Was Pregnant Before Her Father Did".

References and resources