Addmarts > Blog > Digital Marketing > IS TARGET MARKETING EVER BAD?


Posted by: admin
Category: Digital Marketing

What is target marketing?

Target marketing is the decision made to target its marketing efforts and ultimately its merchandise at a particular group of customers. Targeting a market makes it easy and suitable to make sales. It selects the most appropriate market for the products, in this manner increasing its sales. A business house launches a product in expectation that it will sell at a good rate. Launching a product in the market involves an investment of valuable time and resources so that it can mark a place in the market. Performing a target marketing analysis not only saves valuable time and resources but also helps in understanding and gathering information about the target demographic. So when the product is launched in the market, the customers know what they are investing in.

Running a target marketing analysis beforehand makes sure what product is being presented to what type of customers, in that way the products can be tailored according to the needs and expectation of the customers and the business does not have to work backwards.

How is it done?

1) When the idea for the product has been formed it is required to establish who will be interested in the product or service. The marketing process becomes more effective when the marketing strategies and efforts are targeted towards the right customers. Basically, in this step, we are assuming how the market can be.

2)   After the assumptions are made, an actual research is needed to be carried out to make sure what we have assumed is certain or not. Data can also be gathered from previous reports which give more deep information.

In addition to the secondary information, it will be an advantage if surveys were taken by self so that more required information can be gathered. Thus the needs and demands of the customers can be known in a better way and the information can be used in providing right products to the right customers.

3) The gathered information can be used to target the audience which also opens many options like choosing the most appropriate market from many prospect markets which give the highest sales yield. The target markets should have less competition in order for the newly launched product to kick in.

4) Once the target market is chosen, the marketing can be tailored according to the customer behaviour and buying habits.

Why is it so important?

Market targeting is a procedure where a market is broken down into different segments and then the focus is set on the most sales yielding segment. Target marketing is essential for any business because the business needs to know that what it is offering is going to be accepted by the customers. It helps the business to know how much the customers are willing to pay for the product, what will be the demand, what changes need to be made from time to time etc.


Target marketing also tells that the business is going to be profited by what is being sold. It is not wise in wasting time and money only to learn at the end that the customers are not even interested in the product.

As the profit of the business increases the business becomes successful. Target marketing prevents the wastage of valuable time and cost. It allows the business to understand their customers better and to know how to change in future to their preferences.

So, is target marketing ever bad?

Target marketing is constructive for the sales of a business. It helps in choosing the right market for the right products but under some circumstances, carrying out a target marketing analysis becomes challenging.

Small-scale companies may find target marketing an expensive deal but a rough market analysis is done by them to find out what needs the customers have in the particular areas. A thorough research analysis seems to be expensive. Small-scale businesses mostly conduct primary research to determine who will buy their products. A complete market targeting requires hundreds of surveys and interviews but some marketing research managers hire research agencies to carry out the research work but it can cost a fortune.

Since target marketing analysis involves tonnes of surveys, it takes a lot of time. Identifying the target audience, collecting the data, analysing the data, forming the ad campaigns seems to take a lot of time. Some small businesses use market segmentation to determine their target audience. Market segmentation divides the complete market into sub-groups which have similar taste, demand and need.

As understood target market focuses on targeting the markets for best sales but doing this the businesses might lose a significant number of customers. This can be explained with the help of an example; a video games company may focus on the young age group thinking it to be the most potential audience whereas sometimes different age groups also like to play video games.

Thus, we can say that target marketing is good as well as bad at some point, depending on the business type, business size and business growth level. Small businesses may find target marketing unsuitable due to various reasons stated above. Large businesses may benefit from target marketing but they may also lose significant customers trying to focus on the target audience.

Author: admin

Leave a Reply