Study Notes for target market selection

Outline of the target market selection evaluation criteria

Target markets should be evaluated on:

Financial Issues

  • Segment size
  • Segment growth rate
  • Profit margins

Structural Attractiveness

  • Competitors (direct and indirect)
  • Competitive rivalry
  • Access to distribution channels
  • Current channel relationships

Strategic Direction

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Advantages and limitations of the main market segmentation bases

Geographic Segmentation Base Advantages

  • Considers cultural differences of different regions
  • Good for firms with limited geographic reach needing to select a specific target market
  • Great when there is significant socio-economic diversity and significant consumer behavioral differences across regions

Geographic Segmentation

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