The purpose of market targeting is to select the people (or organizations) that management wishes to serve in the product-market. When buyers' needs and wants vary, the market target is usually one or more segments of the product-market. Once the segments are identified and their relative importance to the firm determined, management selects the targeting strategy.

This decision is the focal point of marketing strategy since targeting guides the setting of objectives and developing a positioning strategy. The options range from targeting most of the segments to targeting one or a few segments in a product-market. The targeting strategy may be influenced by the market's maturity, the diversity of buyers' needs and .Preferences, the firm's size compared to competition, corporate resources and priorities, and the volume of sales required to achieve favorable financial results. Deciding the objectives for each market target spells out the results expected, by management. Examples of market target objectives are sales, market share, customer retention, profit contribution, and customer satisfaction.

Marketing objectives m lee also be set for the entire company and for specific marketing activities such as convulsing. The targeting and positioning strategies used by Con Agra Inc. for the Healthy Choice frozen food line helped the new brand successfully enter the market in the early 1990. The low-calorie, low-cholesterol, low-sodium frozen food line quickly gained a strong market position.23 Frozen food is a very competitive supermarket category because freezer space in stores -is limited. Healthy Choice was introduced into the stagnant male-oriented frozen dinner segment of the market. It was positioned as a "health product."

This positioning was successful- even though it conflicts with conventional marketing guidelines: the female-oriented frozen food is the rapid growth segment and health positioning had been used to describe poor-tasting, low-calorie brands. Health is an issue of great concern to men and the taste of Healthy Choice is appealing to consumers who tried the brand.

The new line of frozen foods gained an impressive 25 percent market share in the $700 million frozen dinner market. The line was extended in the early 1990s to include breakfast items, deli meats, and soups.

By 1992 intense price competition, new products, and promotion actions of the competition eroded. Healthy Choice's position in the frozen dinner market, demonstrating the realities of competing against experienced food marketers.