Target marketing is one of the most important, though often overlooked, components in developing a sound marketing plan. Targeting recognizes the fact that most companies have limited resources and therefore, need to “place their bets” where they will yield the highest return.
Many companies are reluctant to select a defined core target segment, fearing that excluding certain groups will decrease an important source of volume. In turn, companies try to serve all customer groups equally, which can result in a diffused offering, that no one group finds appealing.
Marketing Target vs. Consumption Target
“Speak to the target, but let others listen,” as stated by advertising legend Leo Burnett, distills target marketing down to actionable insight.
More adept marketers understand the important distinction between 1) the more narrow “target market” (think the center of the bullseye); and 2) the broader “consumption market” that falls outside of the core target, though often finds the offering appealing.
The following illustrates this important distinction: