Target- Market Strategies:

First, a firm will segment its total market. Then the second strategy is to select one or more segments as the target markets. Thirdly a decision is made to follow one of the three strategies: (I) market aggregation, (ii) single-market concentration, or multiple-segment targeting. The market potential of each segment is assessed and evaluated before management determines which segment it has identified. The segment is then chosen.

There are four guidelines in selecting a target market.

Target markets should be relevant to the firm's goals, objectives and image.

Company's resources must be matched strategically with the market opportunities identified in the target segments. This is necessary for earning profits in the long run.

An organisation must select those market segments which will generate enough sales volume at a low cost to ensure the firm's profits. Profitability sales volume is essential

Selection must be made regarding market segments which have the least and smallest competitors. With these guidelines a seller is expected to decide how many market segments he/she wants to pursue as his/her target markets.