After marketers divide a larger market into smaller groups, or market segments, they must evaluate each segment to determine which one or ones present the most opportunity to maximize sales; this is known as targeting. This activity is important because firms must decide whether they should market their products the same way across all target markets, or whether they should apply a more specialized approach.

The three basic strategies marketers use for targeting markets are:

undifferentiated targeting,

differentiated targeting, and

niche marketing.

Determining which segments to target and which strategy to use is important because simply identifying segments and then selecting some to target is no guarantee that target marketing will be successful. Firms need to be sure that they are targeting the correct segments using the correct strategies.

The goal of this exercise is to demonstrate how a firm determines which target marketing strategy is most effective for its intended target market.

Click the $$Play button to watch the video. Then, answer the questions that follow.

If Karen and Anika want to offer comprehensive assistance to small business owners to help them achieve work$-$life balance, which target marketing strategy should they use?

Multiple Choice

differentiated

undifferentiated

undifferentiated and differentiated

differentiated and niche

niche