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| Two Target Market Profits Essay

The aim of each and every business is always to maximize profit. In order to achieve this goal it has to ensure that it has employed the right marketing tools to enable it make huge sales. There are different market segments that a company needs to target with aim of making sales to the intended |ers. In the case of Coffee Houses and Donut shops there exist two market segments. The |er segment of the company is the beverage segment. This segment targets those |ers who take various beverages. The second segment is the one that targets |ers who takes various food items. Their existence of these two segments is important to the company. In the current market where there is competition it is always important to diversify ones investment. The company has targeted the two segments with an aim of diversifying its investment. Diversification of investment is important to a firm as it help it to spread it risk across a number of investments. Therefore the company management has every reason to diversify its investment across the two market segments as it will help it maximize profit and at the same time spread the various risks that the business is faced with. The two segments markets have the right number of clients that making them worth to target.

Each market is homogeneous in a way. There are a number of features exhibited by each market which make them homogeneous. . First, the firm is engaged in the market where there are many buyers and sellers. Food and beverage market is one of the sectors of the economy where there are many companies that are involved in provision of cover services. On the other hand, the industry has many buyers who are after buying insurance covers for their lives, businesses and other items. Secondly, it operates in a market where the buyers are price takes. The |ers of the company only take prices that have been set by the company and there is no bargaining that are involved. This behavior that is seen in the client of the company makes the firm a perfectly competitive market. It is also involved in offering of products that are uniform with the ones that are offered by other players in the market. The same products are offered by the competitors of this firm. This shows that the firm operates in a market where the products been offered are uniform. The firm also operates in a market where the information on prices is readily available to all the market players that is buyers and sellers. Finally, the firm operates in a market where there is no barrier to exit or entry. It is important to target this market as a group given that it has all the resources needed for the company to get to the two markets. Entering the market as a group enables the firm to reach too many |ers in the short run.

The two markets are heterogeneous given that they sell two different commodities. The commodities being sold in the market are different making the market heterogeneous. It is important to make a distinction between the two markets. First, it will able the management to understand the needs of the |er better and come up with products that better suit each market segment. The services of these two markets should be different given that the |ers being served are different and their needs are different. The food markets need more personalized services while else the drink market can employ any form of strategy aimed at targeting the |ers.

Targeting the two groups of |ers separately will be vital to the company. It will enable the company to provide high quality products o the |ers in each and every market segment, thereby winning their confidence and interest.

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