TARGETING AS A STRATEGIC TOOL FOR BUILDING COMPETITIVE ADVANTAGES IN MARKETING ACTIVITIES

Keywords: targeting, marketing strategy, market segmentation, behavioral targeting, Big Data, ROI

Abstract

The article explores the conceptual foundations and practical significance of targeting within contemporary marketing strategies. Targeting is presented not only as a tactical tool for audience segmentation but also as a fundamental element of strategic marketing management. The study systematically analyzes major targeting methods—demographic, geographic, behavioral, psychographic, and contextual—highlighting their strengths, limitations, and applicability across different business contexts. Special attention is given to behavioral, psychographic, and contextual targeting, as these approaches demonstrate the highest potential for achieving meaningful personalization in consumer communication. The findings suggest that personalization is not merely about delivering tailored messages, but also about maintaining consumer trust by ensuring transparency, respecting privacy, and adhering to ethical principles. The article reviews recent empirical and theoretical research showing that consumers respond more favorably to targeted advertising when it is relevant yet non-intrusive, while excessive commercialization or poorly adjusted targeting settings may result in declining campaign efficiency and loss of trust. The integration of big data analytics and machine learning algorithms is emphasized as a critical driver for advancing targeting precision, enabling real-time campaign optimization, and predicting consumer behavior with higher accuracy. Furthermore, the paper underlines the strategic role of targeting in optimizing marketing expenditures, increasing conversion rates, strengthening customer loyalty, and building sustainable competitive advantages. The analysis confirms that the evolution of targeting has shifted from basic demographic models to advanced behavior-based approaches supported by artificial intelligence and predictive analytics. Such transformation allows businesses not only to adapt campaigns to dynamic market conditions but also to anticipate changes in consumer preferences. In conclusion, targeting is defined as a multidimensional strategic process that combines technological innovation, ethical responsibility, and long-term customer relationship management. Future development in this field depends on enhancing segmentation models, improving transparency of advertising practices, and leveraging predictive analytics as a cornerstone of sustainable marketing strategies.

References

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Jansen B., Moore K., Carman S. Evaluating the performance of demographic targeting using gender in sponsored search. Information Processing & Management. 2013. №1(49). P. 286–302.

Iyer G., Soberman D., Villas-Boas J. The Targeting of Advertising. Marketing Science. 2005. №3 (24). P. 461–476.

Wang J., Zhang W., Yuan S. Display Advertising with Real-Time Bidding (RTB) and Behavioural Targeting. Foundations and Trends in Information Retrieval. 2017. № 4-5(11). P. 267–435.

Grier S., Kumanyika S. Targeted marketing and public health. Annual Review of Public Health. 2010. №31(1). Р. 349–369.

Romaniuk J. Five steps to smarter targeting. Journal of Advertising Research. 2012. №52(3). Р. 288–290.

Camilleri M. A. Market Segmentation, Targeting and Positioning. Travel Marketing, Tourism Economics and the Airline Product. Springer, 2018. Р. 69-83.

Gallego I., González-Rodríguez M. R., Font X. A multi-criteria, composite index methodology to measure the suitability of target markets for the hotel industry. Tourism Management Perspectives. 2023. №47. Р. 101104.

Shin J., Yu J. Targeted advertising and consumer inference. Marketing Science. 2021. №40(5). С. 900–922.

Jiang Z., Wu D. Targeting precision in imperfect targeted advertising: implications for the regulation of market structure and efficiency. Sage Open. 2022. №12(1). Р. 1–18.

Pepall L., Reiff J. The “Veblen” effect, targeted advertising and consumer welfare. Economics Letters. 2016. №145. Р. 218–220.

Marotta V., Wu Y., Zhang K., Acquisti A. Not all privacy is created equal: The welfare impact of targeted advertising. Information Systems Research. 2017. №33. Р. 131–151.

Li Y., Wu R., Liu J., Wang S. The impact of targeted online advertising’s pushing time on consumers’ browsing intention. Journal of Global Information Management. 2023. №31(1). Р. 1–17.

Chun H., Park J., Thomas M. Cold anticipated regret versus hot experienced regret: Why consumers fail to regret unhealthy consumption. Journal of the Association for Consumer Research. 2019. №4(2). Р. 125–135.

Kim T., Barasz K., John L. Why am I seeing this ad? The effect of ad transparency on ad effectiveness. The Journal of Consumer Research. 2019. №45(5). Р. 906–932.

Boroon L., Abedin B., Erfani E. The dark side of using online social networks: A review of individuals’ negative experiences. Journal of Global Information Management. 2021. №29(6). Р. 1–21.

Jamieson K. Messages, micro-targeting, and new media technologies. The Forum. 2013. №11(3). Р. 429–435.

Liu Q., Li J. The progress of business analytics and knowledge management for enterprise performance using artificial intelligence and man-machine coordination. Journal of Global Information Management. 2022. №30(11). Р. 1–21.

Jansen B., Moore K., Carman S. Evaluating the performance of demographic targeting using gender in sponsored search. Information Processing & Management. 2013. №1(49). P. 286–302.

Iyer G., Soberman D., Villas-Boas J. The Targeting of Advertising. Marketing Science. 2005. №3 (24). P. 461–476.

Wang J., Zhang W., Yuan S. Display Advertising with Real-Time Bidding (RTB) and Behavioural Targeting. Foundations and Trends in Information Retrieval. 2017. № 4-5(11). P. 267–435.

Grier S., Kumanyika S. Targeted marketing and public health. Annual Review of Public Health. 2010. №31(1). Р. 349–369.

Romaniuk J. Five steps to smarter targeting. Journal of Advertising Research. 2012. №52(3). Р. 288–290.

Camilleri M. A. Market Segmentation, Targeting and Positioning. Travel Marketing, Tourism Economics and the Airline Product. Springer, 2018. Р. 69-83.

Gallego I., González-Rodríguez M. R., Font X. A multi-criteria, composite index methodology to measure the suitability of target markets for the hotel industry. Tourism Management Perspectives. 2023. №47. Р. 101104.

Shin J., Yu J. Targeted advertising and consumer inference. Marketing Science. 2021. №40(5). С. 900–922.

Jiang Z., Wu D. Targeting precision in imperfect targeted advertising: implications for the regulation of market structure and efficiency. Sage Open. 2022. №12(1). Р. 1–18.

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Published
2025-07-28
How to Cite
Karandin, O. (2025). TARGETING AS A STRATEGIC TOOL FOR BUILDING COMPETITIVE ADVANTAGES IN MARKETING ACTIVITIES . Economy and Society, (77). https://doi.org/10.32782/2524-0072/2025-77-79
Section
MARKETING