Targeted marketing is the process of identifying customers and promoting products and services via mediums that are likely to reach those potential customers.
Targeted marketing classifies potential customers, discovers their preferred content delivery mode and digital hangouts and then builds a marketing strategy aimed at that specific group. Targeted marketing is generally limited in scope but is often more productive than broader types of marketing because it is designed around specific customer preferences.
Techopedia explains Targeted Marketing
Targeted marketing is powered by buyer persona, a model of the ideal customer derived from that customer's demographics, age, race, preferred websites, blogs or video channels and other similar information. Companies use this information to promote their products and deliver marketing messages to right type of person in a place they are most likely to see it.
For example, the target market for a company that sells virtual server solutions will be individuals in the IT industry. As such, a company looking to sell such a product will aim to target these individuals by promoting the product on the blogs and websites such individuals tend to visit, rather than promoting the product to a broader audience.