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Some firms are very good and know what to do when it comes to target market selections. Target market adapts the marketing mix for one or more segment. Credit card companies for instance target young college students like me. They hope to influence the way I buy things. Just yesterday, a credit card company called me to tell me that I have been selected to receive a certain credit dollars from the company even though they know that do not an income right now. Because, I am a college student they are banking on me getting a good job with good disposable income.
The credit card companies take big risk but it must pay off because they have been doing that for many years. Sometimes, I wonder if they make profit this way. Because, I believe and I am sure that not every credit card holder is able to pay off their loan. Credit card companies continue to do this so the data must support their decision.
Credit t card companies are not doing so well these days; it is interesting to see if they will change their tactics.
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