Select Those Target Markets That Can Serve to Better and More Profitably
Currently, companies or organizations recognize that they can not attract all buyers in the market, or at least they can not bring them all in the same way, because buyers are too numerous, too dispersed and too varied in their their needs and purchasing habits. In addition, companies or organizations do not always have sufficient capacity to serve different market segments. So instead of trying to compete in a complete market (which usually includes many market segments), and in some situations against top competitors, each company must identify and select those target markets that can serve to better and more profitably.
Moreover, in practice, the importance of target markets is recognized when companies or organizations are not satisfied with their sales, so at that time may perform any of the following actions in each target market that already have selected :
1. Trying to attract a larger percentage of buyers from your target market. For example, attracting customers from the competition.
2. Reduce requirements for potential buyers of its target market. For example, deleting certain conditions when making loans.
3. Expand your target market is available. For example, a) expanding the coverage of distribution, 2) increasing promotional activities to publicize the benefits of the product to consumers who had not previously reached, or 3) lowering the price.