What is Relative Targeting and Why it Matters?

Simply put, Relative targeting is a B2B segmentation method that scores potential markets or accounts using two types of factors:

• External (market forces that drive urgency to buy)
• Internal (your company’s ability to win and serve that segment well).

Instead of asking “Who fits our TAM?”, it asks “Which segments are both attractive and winnable for us compared to the others?”, then prioritizes only those.​

Relative targeting is a segmentation and prioritization method that ranks markets, segments, or accounts against each other based on both external attractiveness (size, growth, urgency, propensity to buy) and internal fit (your ability to win, serve, and differentiate), so you focus GTM and launch efforts on the few segments that are most valuable and winnable for your company right now.

Why it matters

Trying to market to every possible segment leads to lowest‑common‑denominator messaging, wasted budget, and overloaded sales teams chasing low‑probability leads. Relative targeting concentrates resources on segments where external trends are pushing buyers toward a decision and where you have strong fit, expertise, and proof—so campaigns are sharper, win rates higher, and GTM efforts more efficient.​

For NPD and Launches

Relative targeting is especially powerful for New Product Development (NPD) and launches because it tells you which buyers to build and launch for first, not just who could theoretically use the product.​

Why relative targeting matters for NPD

For a new product, resources are limited and proof is thin, so picking the wrong first segment slows learning and burns budget. Relative targeting compares potential use cases and verticals on two axes: where the pain and urgency are highest (external attractiveness) and where your team, tech, and references give you an “unfair” chance to win (internal fit). The result is a short list of priority segments that become your design partners, beta customers, and lighthouse logos.​

How to apply it in launches

During NPD, use relative targeting scores to choose 1–2 “design partner” segments whose needs shape your roadmap, messaging, and early success metrics.​ 

For launch, build GTM motions—positioning, pricing, case studies, and sales plays—specifically for these top‑ranked segments, instead of trying to serve the whole TAM on day one.​

Post‑launch, revisit the scoring to decide which adjacent segments to expand into next, using lessons and proof from your initial focus area.

Relative targeting is highly relevant in this phase. New product development and launches are where strategy meets reality: this is the moment your ideas leave the slide deck and face real buyers, real budgets, and real risk. In this series, the focus will be on how to de‑risk that moment using tools like relative targeting—choosing the right first segments, design partners, and lighthouse customers so you are not “launching to everyone” but building for the few who are most likely to buy, adopt, and advocate.