Strategic Targeting
Identification of target customers is directed by the company’s capability to develop an offering that can meet the needs of these customers more effectively than the competition, while also creating value for the company.7 This requires that strategic targeting start with pinpointing the customer need(s) that the company’s offering will be designed to fulfill.
Effective strategic targeting requires the company to make an important but difficult tradeoff: the calculated decision to deliberately forgo some potential customers to more effectively meet the needs of other customers. Companies have failed because of their unwillingness to sacrifice market breadth and focus only on customers for whom their offering could create ...
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