It appears to me that using the target market strategy of:
"dividing the total market into different segments on the basis of consumer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments"
proves to be more profitable than simply focusing on one target market. An example of a company that does this extremely well is Ralph Lauren. Ralph Lauren Collection is the premiere product line but within that line they have multiple brands such as Ralph Lauren Blue Label, Ralph Lauren Black Label, Pink Pony, Ralph, Polo Jeans Company, Ralph Lauren Gold, and RLX. All of these labels represent high end merchandise but each one targets a different segment within the larger market of people who are looking for high fashion, high quality garments. Having 7 different labels within the larger company allows for a much higher profit potential and a much wider customer base than simply having 1.
"dividing the total market into different segments on the basis of consumer characteristics, selecting one or more segments, and developing products to meet the needs of those specific segments"
proves to be more profitable than simply focusing on one target market. An example of a company that does this extremely well is Ralph Lauren. Ralph Lauren Collection is the premiere product line but within that line they have multiple brands such as Ralph Lauren Blue Label, Ralph Lauren Black Label, Pink Pony, Ralph, Polo Jeans Company, Ralph Lauren Gold, and RLX. All of these labels represent high end merchandise but each one targets a different segment within the larger market of people who are looking for high fashion, high quality garments. Having 7 different labels within the larger company allows for a much higher profit potential and a much wider customer base than simply having 1.
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