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Top Market Strategy by Elizabeth Rush Kruger

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12.2 Target Your Top Market Segment

When your business focuses its time, money, and marketing strategies on targeting its top market segment, it will attract more of these highly profitable customers (Table 17). However, your business will suffer an opportunity cost unless it switches its resources away from serving other market segments.

An opportunity cost is the amount of profit that could have been earned by using resources more effectively.

Table 17. Resource Allocation to Profitability Segments

Profitability segmentScore on the Profitability IndexDecision logic
Bottom market segmentLow scoreThese customers tend to be opportunists who will ...

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