What benefit does targeted marketing provide to companies?

Targeted marketing significantly improves customer satisfaction by tailoring marketing efforts to the specific needs and preferences of a defined audience. By identifying and understanding the characteristics of their target market, companies can create personalized messages, offers, and products that resonate more deeply with customers. This leads to a more relevant and engaging experience, as customers feel that the brand understands and values their needs. When companies can demonstrate this understanding through targeted campaigns, it not only increases the likelihood of a purchase but also fosters loyalty and repeat business, as customers are more inclined to engage with brands that effectively address their interests.

In the context of the other options, while reducing costs and standardizing products may have certain benefits, they do not directly enhance customer satisfaction in the same way that a tailored approach does. Similarly, increasing competition can be a consequence of successful targeted marketing, but it doesn't inherently lead to improved customer satisfaction; rather, it can lead to a more crowded marketplace where standing out might become challenging.