Selecting The Correct Market Segment To Increase Profitability
The ability to choose a market segment that will produce the most profits is essential to any business. For instance, if you are a toy company that manufactures toys for children ages 1-10, your target market segment would obviously be for children under the age of eleven. Taking this into account, you would not advertise your products on television channels like MTV and VH1. You would advertise on television channels like Nickelodeon, Disney, and Cartoon Network. To ensure success of the company, you would not waste money on advertising to teenagers. The key to increase profits would be to show children your outstanding products on television channels and magazines that they in fact watch and read. This was a rather obvious example; however, choosing the proper market segment is one of the most important steps to improve profit levels for a business. Determining exactly who you want to market your product to is a key management and marketing principle.
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