Targeting

Targeting is a marketing method and the second phase of STP (Segmentation-Targeting-Positioning). It is a choice of target market segments based on the given segmentation.

Key criteria are:

• Segment size - number of potential customers
• Segment growth potential - forecast of the number of customers in the future
• Segment attractiveness - financial capacity of potential customers, threat of entry of competitors possibility of substitutes, price of complements, etc.

Targeting is followed by positioning.