What is target marketing?

Target marketing is the practice of aiming goods and services at a specific group of consumers. Rather than take a shotgun approach, for example, selling to 18- to 49-year-olds, companies try to narrow their marketing as much as possible, finding only the consumers who are likely to buy from them.

Companies use this strategy because they see how differentiated the marketplace has become, and how it's no longer productive to market to everybody in general.

Companies must drill down and ask themselves relevant questions to create a profile of their ideal customer. They must ask about the customers' age, gender and salary, and where they live, for example.