International General Certificate of Secondary Education (IGCSE) Business Studies Practice Exam

Target marketing involves concentrating marketing efforts on a specific group of consumers that a business aims to reach. This strategy allows businesses to tailor their products, services, and promotions to meet the particular needs and preferences of that defined audience. By focusing on a specific market segment, companies can create more effective marketing campaigns that resonate with their audience, ultimately leading to increased customer engagement and higher sales.

In contrast, a broad approach that seeks to reach all consumers, regardless of their interests, would likely dilute marketing efforts and fail to establish a connection with any specific group. Raising prices for all products doesn't define a marketing strategy but rather an economic decision that could alienate customers. Eliminating competition is more of a strategic business goal or tactic, which does not directly pertain to the marketing focus on a specific consumer group. Therefore, understanding target marketing is crucial for businesses looking to optimize their advertising and improve customer satisfaction by delivering tailored messages to a well-defined audience.