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5 Types of Target Marketing Strategies You Should Know

To survive in the cutthroat business landscape today, companies need to zero in and understand target marketing strategies and how they can benefit them in the long run. It’s a tough situation to build and thrive immediately as a business but by adjusting, many companies not only build more awareness but also effectively engage customers, increase conversions, and drive success even more. 

This article seeks to help you determine and identify the five types of marketing strategies that you can leverage. We’ll also provide key examples of successful brands and highlight the benefits and possible drawbacks of each approach.

The Importance of Understanding Different Target Marketing Strategies.

Target marketing is a strategic approach where businesses focus on particular groups of consumers to whom they want to sell their products or services. This concentration on specific segments allows companies to tailor their marketing efforts for maximum impact. By identifying and understanding the unique needs and preferences of these groups, businesses can create more personalized and effective marketing campaigns.

The primary purpose of target marketing is to allocate marketing resources efficiently and effectively. Target marketing hones in on a defined audience with precision. This specificity ensures that marketing efforts are not diluted over a broad audience where the message may not resonate. By engaging with segments that are more likely to be interested in what a business offers, companies can increase the likelihood of conversion.

Also, target marketing aids in distinguishing a brand in a crowded marketplace. When businesses understand their target consumers, they can craft messages that speak directly to those consumers. Whoever they may be. This way, they can highlight the benefits and features that matter most to them. This tailored communication helps build a stronger connection with the audience, positioning the brand as a preferred choice.

Now that the concept of target marketing is more clear, let’s take a look at some of the most common types used by successful businesses and brands.


Undifferentiated Marketing

If you want to reach a broader audience, undifferentiated marketing is the best option you’ll have. This strategy is also sometimes called “mass marketing”. This marketing strategy focuses on pushing out standardized marketing messages. It allows businesses to reach and capture a wider net of potential customers with the messages they put out. 

A brand that has seen huge success in this marketing strategy approach is Coca-Cola. Over the years, the brand has been known to create captivating advertisements seen on television, heard on the radio, and sought after on both offline and online platforms.. They have successfully created a global brand that transcends race, culture, and background. 

Why is it a good strategy? It’s cost-effective because it entails a relatively low cost per impression to reach a large audience. It focuses on building brand awareness and gives the freedom to companies to take advantage of economies of scale. However, there are some drawbacks to this strategy. It lacks personalization as the same message is delivered to a diverse set of audiences, potentially resulting in lower engagement and conversion rates.


Segment Marketing

Segment marketing focuses on dividing the target market into different segments based on a shared characteristic – demographics, psychographics, or even behavior. By really pinning down and understanding the interests, needs, and preferences of each segment, companies are able to customize their marketing messages and strategies more effectively. 

A brand that is known to do this well is Nike. They have been known to target varying segments including fitness enthusiasts, athletes, and fashion-conscious individuals. So, what the company does is create specific product lines and marketing campaigns to target each segment efficiently and effectively. 

What I appreciate about segment marketing is the potential for improved targeting as a brand. You can also utilize personalization and customization as well as practice efficient resource allocation. 

This could mean a lot more work because you’re talking to different target segments. However, it also makes your company more versatile in terms of the consumers’ points of view. However, managing multiple segments can be more complex, and there is a huge risk of missing out on potential customers who do not fit into any of the segments you’ve outlined or are focusing on. 


Niche Marketing

I consider the niche marketing strategy a favorite of mine. It’s the marketing strategy known to target only a small, specialized segment that has a specific preference or need that is not addressed by mainstream services and products. 

One brand that’s really doing well on this type of approach is Lululemon. If you don’t know who they are, they’re a brand that focuses on providing high-quality activewear for yoga enthusiasts. By catering to the specific needs of this niche market, they have established themselves as a leader in the industry. They are able to attract a loyal customer base and command premium prices. 

With this marketing strategy, you can expect less competition. You also gain higher customer loyalty.

Here are some other benefits to this important strategy:  

  • Creating a Memorable Shopper Experience
  • Reduced Ad Costs
  • Less Competition
  • Opportunity for Price Increase

There are some downside, however. Once you’ve tried and tested this approach to marketing, you also have the risk of capturing a limited size of niche markets. There’s also that drawback on the niche market viability – is this market growing in size over the years or is it stagnant? Some things you need to consider if you want to try this marketing strategy. 


Micro Marketing 

Micro marketing is a highly target strategy that focuses on delivering personalized marketing experiences altogether. Don’t get confused between micro-marketing and niche marketing. It targets individual customers or small groups with high precision. Businesses have the power and leeway to personalize campaigns that will work and resonate well with the specific needs of each customer. Thanks to access to data and technology, of course. 

One brand that has aced this is e-commerce giant Amazon. By diving deep into customer data, they are able to offer personalized product recommendations and targeted advertisements. They are then able to enhance the overall experience of each customer, achieving higher conversion rates. 

This marketing strategy is hyper-personalized, improves customer satisfaction, and has the potential for higher conversion rates. The drawback? Implementing just micro-marketing strategies can become very resource-intensive. Privacy concerns could also arise if customer data is not handled properly.


Local Marketing

If you’re a small business operating in only a specific area, this marketing strategy will get you going. Local marketing, also known as location-based marketing, zeroes in on customers within a particular geographic area, such as a town, city, or state. This strategy focuses on establishing a strong presence within the local community and building relationships with local customers. The aim is to have those customers become repeat buyers. It’s growing affinity towards the brand so that locals remember you and you become top of mind. 

The best brand that I know of that uses this is McDonald’s. They’ve grown from just being a neighborhood dining place to a global brand. McDonald’s has a long history of adapting their marketing efforts to local markets – and doing really well at it. For instance, they’ve created localized menus in many countries. They feature items that are popular and loved by locals. In India, McDonald’s offers the McAloo Tikki burger; in Japan, they offer the Ebi File-O-Shrimp sandwich. 

It’s a great option for local businesses who want to build genuine community connections. It is also good for finding great geographic relevance and improving word-of-mouth marketing. However, this approach to marketing may have limited reach compared to broader approaches. Success can also be tied to local market conditions – the population in a specific town, the purchasing power of individuals, and the economy. 

Now it’s not an easy task for you as an entrepreneur to determine which marketing strategy will work for you from the get-go. Oftentimes, it requires a lot of research, market-fit testing, and investments to get things running. But once you are able to test and run the right target market strategy, you will effectively engage with the audience you want and drive success.


The important thing to note here is that as an entrepreneur, you need to understand your target market, customize your messages, and deliver the value that addresses their needs and preferences. If you’re unsure how to determine your target market demographic, this article can guide you to identify who you should be talking to for your business.

Also read:

Understanding the Differentiated Targeting Strategy

The Concentrated Marketing Strategy Explained

Understanding Behavioral Marketing and Its Benefits

Victoria Walling on InstagramVictoria Walling on Linkedin
Victoria Walling
Team Writer: Victoria is an award-winning international communications manager with over 13 years of experience in strategic campaigns, brand storytelling, and building stakeholder relationships across diverse industries and regions. She is known to challenge norms and capitalize on brand storytelling opportunities. She is an avid writer, a frustrated chef, and a passionate advocate for diversity and inclusion.

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Team Writer: Victoria is an award-winning international communications manager with over 13 years of experience in strategic campaigns, brand storytelling, and building stakeholder relationships across diverse industries and regions. She is known to challenge norms and capitalize on brand storytelling opportunities. She is an avid writer, a frustrated chef, and a passionate advocate for diversity and inclusion.

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