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 Fit with the firm’s strategic future Growth expectations Marketing Expertise Resources (financial position and staff …

Study Notes for target market selection Find Out More…

Study Notes for Segment Profiles

What is a segment profile? A segment profile is a descriptive summary of the size, needs, behaviors and preferences of consumers within a particular market segment, with the goal of evaluating segment attractiveness and developing suitable marketing strategies. Study Tip Connect the word ‘profile’ to a criminal profiler that we see on TV crime shows …

Study Notes for Segment Profiles Find Out More…

Study Notes for market segmentation evaluation criteria

The market segmentation evaluation criteria After constructing a set of market segments in the STP process, the market segments are then subject to evaluation against a set criteria. This is a checkpoint stage in the STP process. Its goal is to ensure that the segments meet basic requirements and guidelines for usable segments. Main Evaluation …

Study Notes for market segmentation evaluation criteria Find Out More…

Study Notes for how market segmentation is undertaken

How to segment a market? (Technical aspects) There are two main approaches: cluster analysis (if data is available), otherwise segmentation trees. Cluster analysis Cluster analysis is an analysis designed to categorize objects to a pre-defined number of different groups, with each group being relatively similar on a range of selected attributes. The resultant groups are …

Study Notes for how market segmentation is undertaken Find Out More…

Study Notes for Business Segmentation Bases

What is a business segmentation base? A business segmentation base is definable characteristics or behavior of organizations that can be utilized to classify the organizations into related groups, for the purpose of target marketing. Main business segmentation bases (with examples) Geographic location/s: Where the business operates. Examples: Countries, regions, spread of operations across areas Business …

Study Notes for Business Segmentation Bases Find Out More…

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 Base Limitations Assumes that consumers in a geographic area are similar, which is generally unlikely …

Advantages and limitations of the main market segmentation bases Find Out More…

Quick Study Notes for Market Segmentation

Quick Study Notes for Market segmentation Definition of market segmentation The process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets. What are segmentation bases? A definable characteristic, identity or behavior of an individual consumer that can be utilized to classify consumers …

Quick Study Notes for Market Segmentation Find Out More…

Quick Study Notes for markets, sub-markets and product-markets

Quick Study Notes Market Consists of many buyers and sellers, within a particular industry or product category, who are seeking to create or gain value through the exchange of products for money. Sub-market A smaller and more defined sector of an overall market, which has a number of differing marketing and structural features, which may …

Quick Study Notes for markets, sub-markets and product-markets Find Out More…

Scroll to Top