You can create a new Target object by double-clicking on
"Target" in the Object Toolbox. The Target dialog will open. Currently, Target
objects contain no editable attributes.
By default, a new Target is located at the origin. The Target will
be displayed in editor-mode views as a small bullseye:

You can move the Target in the normal manner by selecting it in the
Hierarchy Panel, and using the Translate tool.
You can also animate a Target object in the usual way by making it a child of a Path object.
Once a Target has been created, it will appear in any
"Target" pulldowns in objects that support the use of Targets, such as Cameras and Lights (when used as
spotlights). Once a Target has been selected, the objects that are using the Target will
rotate as necessary to point at the Target over the course of the animation.