Targeted promotion identifies specific customers and promotes products through various promotion types and intensities. 

There are two perspectives from which retailers can approach targeted promotions:

Product Centric –   retailers know the product they want to promote and aim to find the best group of customers to advertise to. Such strategies are often employed in a vendor subsidized campaign or to shift customers towards more lucrative products. 

Customer Centric –  identifies the group of customers the retailer wants to target and then seeks to find the product that best accommodates the interest of the target group. Retailers often use this strategy to attract new customers or to establish loyal relationships with infrequent customers.