How many target markets can a firm have?
The usual starting point for any new organization is a selection of just one target market. This is because most new organizations are limited in resources and reputation and are still developing their expertise. However, as firms become successful they typically look for growth opportunities by expanding their range of target markets.
As a general rule of thumb, the larger an organization is the more target markets they would be likely to have. For example, Telstra (which is a major telecommunications provider in Australia) has stated that they have around 25 to 30 different target markets, ranging from individuals, households, small businesses, large corporations, government departments, and international markets.
For further information, you should review the section on Differentiated or Concentrated target marketing strategy.
- The Difference between Primary and Secondary Target Markets
- Target Markets
- What is the STP Process?
- The Full STP Process