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Targeting is a strategy in which marketers evaluate the attractiveness of each potential segment and decide in which of these groups they will invest resources to try to turn them into customers.
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Example of targeting:

For example, a woman’s clothing retail department chain decides to open a new store in a particular community. The marketers may have a list of all consumers within the community, however, they want to segment their list of consumers to a target group of women over the age of 25 who are employed and earning an income over a certain dollar amount.

The marketers will extract the data for only the demographics mentioned above and begin to craft marketing collateral to their target market. They, in essence, are investing their resources into the above mentioned target group.
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