Targeting is activity involving selection of target markets, which at the relevant marketing expenditures will provide optimal results.This provides a possibility to achieve higher turnover, thereby obtaining a greater market share. Target market is a market where the company should focus, to locate their business. In order to properly assess the effectiveness of the selection of target markets, growth should be in a form of a snowball effect in relation to expenditures on marketing and thus also referred not to the rotation, but the net results (profits). Market segmentation is the basis for the selection of target markets
Experimental plans, involving the application of appropriate marketing tools in selected groups of market segmentation, precede the selection of target markets. To experiment involves the same market and the application of different marketing tools and activities, such as: advertising, exposition, a new form of sale, price change, discount, etc.
Criteria for choosing target markets
Selection of target markets may be carried out according to different criteria:
- According to the main factors
- According to side factors
- According to order of the impact of incentives
- According to repeated measures
- Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill.