Few companies have done as good a job of choosing target markets as Metaphor Computer Systems. Started in 1983 by a group from Xerox, Metaphor developed a computer system that enables managers and analysts to gain quick and easy access to business data. The system gathers statistics from the company`s own mainframe computers, combines them with data from outside sources, and organizes all the information in a form that is convenient for the manager to use at his risk.

To market their system, Metaphor recognized that it had to target its efforts. Different types of managers have different information needs, and Metaphor could not hope to satisfy all of them. So Metaphor decided to focus its efforts on particular types of managers in particular industries.

To begin with, the company chose two target industries: consumer packaged goods and financial services. And in each industry, it decided to focus on managers in two functional areas: marketing and finance. Metaphor hired experts from each of the target industries, and develop specialized software package to meet the needs of the target managers in those industries.