Vertex Views

Tag: Criteria

  • Day 5 — Targeting: Picking The Right Battles

    📌 Part of the 50-Day Mini-MBA in Marketing Series
    Read the full 50-Day Calendar here → 50-Day Mini-MBA in Marketing — The Strategic Lens

    Segmentation tells you who exists in the market.

    Targeting answers a harder question:

    👉 “Who are we going to serve — and who are we deliberately ignoring?”

    This is where most brands hesitate.
    Because choosing a target means rejecting opportunities.

    But here’s the truth:

    If you try to target everyone, you become irrelevant to anyone.

    1. Targeting Is a Business Decision, Not a Marketing One

    Most people think targeting is about messaging.

    It’s not.

    Targeting determines:

    • What product do you build
    • What price do you set
    • What channels do you use
    • What experience do you design
    • What perception do you create

    In other words:

    👉 Targeting shapes the entire business model.

    2. The 3 Common Targeting Strategies

    Let’s simplify how brands approach targeting.

    1️⃣ Mass Marketing (Undifferentiated)

    “Everyone is my customer.”

    Works when:

    • The product is universal
    • Differentiation is low
    • Scale matters more than precision

    Example:

    Coca-Cola

    Targets everyone who wants refreshment.

    But notice something:
    Even mass brands still rely on strong positioning and distribution, not just scale.

    2️⃣ Differentiated Targeting (Multiple Segments)

    “Different people, different strategies.”

    Brands create different offerings for different segments.

    Example:

    Maruti Suzuki

    • Alto → budget buyers
    • Swift → young drivers
    • Baleno → premium hatchback segment

    Same company.
    Different targets. Different strategies.

    3️⃣ Niche Targeting (Focused Strategy)

    “We serve a specific group better than anyone else.”

    Works when:

    • The segment is clearly defined
    • Needs are unique
    • Willingness to pay is higher

    Example:

    Rolex

    Not targeting “watch buyers.”
    Targeting:

    • status-driven consumers
    • legacy-oriented buyers
    • high-income individuals

    They win by depth, not breadth.

    3. The Real Criteria for Choosing a Target Segment

    Not all segments deserve your attention.

    Use this 5-factor filter:

    1️⃣ Size

    Is the segment large enough to matter?

    2️⃣ Growth Potential

    Is the segment expanding or shrinking?

    3️⃣ Profitability

    Can this segment actually generate margins?

    4️⃣ Accessibility

    Can you realistically reach them?

    • channels
    • distribution
    • media

    5️⃣ Competitive Intensity

    How crowded is the space?

    • Are there dominant players?
    • Can you differentiate meaningfully?

    👉 The best segments are not always the biggest.
    They’re the ones where you have an unfair advantage.

    4. The Biggest Targeting Mistake: Chasing Volume Instead of Fit

    Many brands say:

    👉 “Let’s go after the largest audience.”

    That’s how you burn money.

    Smart brands ask:

    👉 “Where do we have the highest probability of winning?”

    Example:

    Apple

    Apple doesn’t target “everyone who needs a phone.”

    They target:

    • design-conscious users
    • ecosystem-oriented users
    • premium buyers

    By focusing on this segment, they:

    • command higher margins
    • build stronger loyalty
    • avoid price wars

    5. Targeting Is Also About What You Say No To

    This is where strategy becomes uncomfortable.

    Because every “yes” comes with a “no.”

    Example:

    Patagonia

    They actively avoid:

    • fast fashion buyers
    • price-sensitive mass consumers

    They choose:

    • environmentally conscious consumers

    That clarity strengthens their brand.

    6. Targeting Shapes Perception

    Your target audience defines how the market sees you.

    Example:

    • Zara → trend-conscious urban shoppers
    • Decathlon → value-driven fitness enthusiasts

    Different targets → different perceptions → different growth paths.

    7. A Simple Targeting Framework You Can Use

    Ask these 4 questions:

    1. Who has the strongest need?

    (Not just interest — urgency matters.)

    2. Who is easiest to convert?

    (Low friction = faster growth.)

    3. Who is most profitable long-term?

    (LTV > CAC thinking.)

    4. Where do we have an unfair advantage?

    (Product, brand, distribution, cost, insight.)

    If a segment checks all four boxes, you’ve found your battlefield.

    8. The Strategic Insight

    Targeting is not about maximising reach.

    It’s about maximising relevance + efficiency + advantage.

    Because in modern markets:

    👉 Attention is limited
    👉 Competition is intense
    👉 Switching costs are low

    So the brands that win are the ones that say:

    “This is exactly who we’re for — and we’re going all in.”

    What’s Next

    Tomorrow we move to:
    Positioning — Crafting Mental Availability

    Because once you choose your audience,
    The real question becomes:

    👉 How do you occupy a clear space in their mind?