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Targeting follows on from segmentation, which is the process of dividing the market into groups of people with similar needs. Targeting is the process of deciding which segments should be approached with the firm's marketing mix.

Marketers must decide which segment to target in order to achieve the firm's overall objectives. This may not mean choosing the most profitable segment: a manager may decide to aim for a segment that is currently under-served (or even not very profitable) on the grounds that competitors are less likely to enter the market. There are three basic strategic options open to managers when they are choosing a segment:

  • Concentrated marketing (single segment). Also known as ...

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