Targeting one or multiple groups of customers.
The answer depends on the resources and stage of the business, not on opportunities on paper.
For small and new businesses, focusing on a single group almost always yields better results because you can align the product, message, and channel deeply with one group rather than superficially across many. Serving multiple groups only makes sense if you have enough resources to cater to each group separately, as each group needs different products and messages. The most common mistake is choosing many groups on paper but only having one common message, causing no group to feel accurately represented.
- small, new businesses with limited resources need to win quickly
- sufficient resources to create unique products and messages for each group
- dependent on a group that is too risky, capable of operating in parallel
- targeting multiple groups but with only one common message
- expand the group too early before winning the first group
For small and new businesses, the answer is almost always: choose one group first, win there, and then consider the next steps. This is not because opportunities in other groups are not real, but because your resources are not sufficient to serve multiple groups meaningfully at the same time.
Why focus is stronger than spreading out
In the STP framework (segmentation, targeting, positioning) proposed by Kotler, the concentrated targeting strategy has a clear advantage for small businesses: you can deeply understand one group, create products that match them, choose the right channels they use, and craft messages that address their specific issues. Achieving this with one group is already challenging. Doing it with three groups at once means each group only receives a third of that attention.
Differentiated targeting strategy is not wrong, but it requires resources to be doubled or tripled based on the number of groups. Each group needs its own message, its own channel, and sometimes even its own product adjustments. If you do not have a strong enough operational team, trying to serve multiple groups at once will result in each group being served at an average level.
Deciding factors for your choice
- Dedicated resources: each team needs its own products, messages, and channels. Doubling the teams means doubling the work and budget.
- Business phase: The smaller and newer you are, the more you should focus on a group to ensure success before expanding.
- Difference level between groups: If the two groups you are targeting have significantly different needs, using a common approach will not resonate with either group.
- Dependency risk: Relying on one group to reduce costs increases risk if that group declines. This is a valid reason to consider a second group, but only when the first is stable.
- Parallel operational capability: running multiple different messages without internal confusion is an organizational skill that needs to be developed; it does not come naturally.
When to choose which direction
Target multiple groups with separate offerings is suitable when: the business has stable finances from the initial group, has a strong enough team to operate in parallel, and understands each group well enough to craft distinct messages for each.
Serves multiple groups but only uses a common message, which means selecting many groups on paper but doing mass marketing: the result is that no group feels accurately represented.
Sinh Vũ's internal process perspective.
Common mistakes when selecting a customer group
- Target multiple groups to avoid missing opportunities: The message must be broad to encompass everything, resulting in not truly reaching anyone.
- Expand too early: Not having secured the first group before moving to the second, diluting resources and both groups receive poor service.
- Message duplication: Taking content written for one group and applying it to another group with different needs, without any adjustments.
- No consideration for dependency risks: Putting everything into one group without a plan if that group declines.
The viewpoint of Sinh Vũ
In the positioning sprint package, Sinh Vũ only builds one primary customer persona. Not because other groups do not exist, but because clarifying one group first helps make every subsequent decision, from naming and messaging to channels, more specific and verifiable.
When a business grows larger and needs to coordinate multiple channels, Sinh Vũ provides a trio of personas along with a customer journey map to serve multiple targeted groups. Each group has its own message, not a shared one.
The hard boundary that Sinh Vũ maintains: if multiple groups are selected, each must be addressed individually. There is no situation where three groups are chosen but only one introduction is written for all.
Decision checklist
Topic: Should you target a single customer group or multiple groups at once. Sinh Vũ guide, sinhvu.com
Select each item you find appropriate, then print or save as PDF to take with you.
If you have marked most of the signs above, this is the time to discuss in more detail. Sinh Vũ can help you review and propose a direction.
References
Kotler, targeting strategy in STP (focusing on concentrated, differentiated, mass markets). Kotler and Keller, the concept of multiple niching (serving many small niches to share risk). Internal process perspective of Sinh Vũ Studio.
Frequently asked questions
If my product is suitable for multiple groups, why not target all of them at once?
Product suitability does not mean you have the resources to effectively reach all. Each group needs its own message, channel, and sometimes even product adjustments. Targeting everyone with a common message often results in: no group feels their needs are accurately addressed, and the marketing budget is spread too thin.
When should you expand from one group to a second group?
When you have firmly established yourself in the first group, meaning you have a stable customer flow, good retention rates, and a clear message. Expanding too early when the first group is not solid can dilute resources and may lead to both groups not being well served.
I'm worried about relying too much on one group, what should I do?
This concern is valid: concentrating everything in one group increases risk if that group declines. Sinh Vũ typically advises to solidify the main group first for financial stability, then build a second group with distinct offerings and messaging, avoiding the same approach as the first group.