Ethical Implications of Target Market Selection

Abstract

Marketers have been criticized recently for the selection of target markets, especially for targeting disadvantaged segments of a society with harmful products. Very little has been done, however, to provide guidelines for marketers developing target market strategies. This article examines the ethical dimensions of target market selection. The proposed model for analyzing target markets allows for differences in both the sophistication of consumer segments and the product's benefits or harmfulness to users and society. Within this proposed framework, market failures related to target market selection are identified. Furthermore, the ethical and public policy implications of various categories of market failure are explored. Finally, future research directions are suggested for both the micro and macro levels.