Targeting is basically selecting which segments best fit what we are offering so that we can then in turn position a marketing message in front of them. This might seem like a broad description of marketing, but it really fits when looked in its parts. Market segmentation has to first occur based on demographics, psychographics and geographics. Behaviors of the most desired segments are studied and then targeting can occur based on which behaviors can be tied to specifically identifiable target niche groups based on what at that point is determined best fits the top-down organizational purpose, i.e. a top-down corporate strategy (Iacobucci 2022: p. 53-54). Targeting is very important, and we will examine the basic categories of ways to dial in the target niche from within a market segment.
There are two main ways of choosing a segment to target, one is called “Profitability and Strategic Fit” (p. 54) and the other is called “Competitive Comparisons” (p. 56). Because I am involved with small business services marketing (CLICK THIS LINK TO SEE MY YOUTUBE TO BLOG & SEO/SMM SERVICE OFFER), I tend to lean more heavily on the “Profitability and Strategic Fit” (pp: 54-56) because of the corporation centric angle of looking at who the corporation is and what customers make sense for the corporation and then I micro-toggle over to the “Competitive Comparisons” approach because most small business professionals with whom I work do not have the resources to do as much research on its competitors (pp: 56-58).
One quick way of skipping over a market segmentation analysis of sizes segments based on demographics, psychographics and geographics like the tactic of using ChatGPT to ask OpenAI what “Target Niche” your well described intended business activity should pursue (Manuel Suarez, YouTube). It is probably not proper to say that one would be skipping over a market segmentation analysis of sizes of segments by doing this, but it is a reverse calculus of using AI to give yourself a decent idea of a starting place for a business’s “Profitability and Strategic Fit” so that from there more online data from disparate sources can be sought out to determine what market segmentation demographics, psychographics and geographics your intended target niche would even fit inside of.
This type of reverse calculous can give a business analysist a two-layered set of outside businesses to study, compare and contrast with the business for which the marketing is being done. It is possible to search around for businesses with very similar marketing offers that are positioned in main channels for the target niche chosen and compare them with the intended marketing message which a business desires to similarly position. Then it naturally follows to compare those businesses with each other and then compare this clump of target niche businesses with a larger set of businesses which fit within the general market segmentation based on demographics, psychographics and geographics.
The target niche can be adjusted to best fit competitively within the group of businesses that can be analyzed this way. This reverse way of analyzing how to pick a target niche so that a marketing message can be properly positioned in front the target niche fits well with “Smart Insights: Stages in Target Marketing Strategy Development” (Smart Insights, Online Article), because it simply gives a good anchor point for a demand analysis. Though not the traditional sequence, it is still the traditional structure of analysis to start by using an AI tool to determine desired Target Niche first.
The elements of positioning involve identifying the target market—understanding the specific group of consumers the business aims to reach—defining the competitive frame of reference, which sets the category or set of competitors within which the business operates, and highlighting the point of difference, or the unique benefits that distinguish the product or service from others. Additionally, it includes articulating the value proposition, which succinctly conveys the overall value or benefit offered to the target market. Together, these elements create a clear and compelling brand image in the minds of consumers. Targeting in marketing is crucial because it allows businesses to tailor their messages specifically to the needs and preferences of a defined audience, maximizing relevance and engagement. After analyzing market segments and comparing competitors through the perception matrix, targeting ensures that marketing efforts are directed towards those most likely to respond positively, enhancing the effectiveness of the positioning strategy and improving overall campaign efficiency.
BIBLIOGRAPHIC INFORMATION
Iacobucci (2022). Marketing Management (6th ed., pp. 1-84). Cengage.
Hanlon, A. (2024). The Segmentation, Targeting, Positioning (STP) Marketing Model. Smart Insights. https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-targeting/segmentation-targeting-and-positioning/
Manuel Suarez. (2024, August 2). Find your target audience in minutes with AI [Video]. YouTube. https://youtu.be/6Xb5mNBfzrU?si=PPr2X6DrYvDHXAkW