1. HOW SHOULD A COMPANY
CHOOSE THE MOST
ATTRACTIVE TARGET
MARKETS?
2. EVALUATING DIFFERENT MARKET
SEGMENTS
The firm must look at 2 factors:
Overall attractiveness of the segment
Company’s objectives and resources
Shivam Verma || IIT Delhi
3. THE MARKET MUST HAVE
ATTRACTIVE CHARACTERISTICS
Shivam Verma || IIT Delhi
Size
Growth
Profitability
Scale Economies
Low Risk
4. SOME QUESTIONS THAT SHOULD
BE ANSWERED
Shivam Verma || IIT Delhi
oHow well does a potential segment score on the effective
segmentation five criteria?
oDoes investing in the segment make sense given the company’s long
run objectives?
oDoes the company lack one or more necessary competencies to offer
superior value?
oWhich level of segmentation is required?
5. ETHICAL CHOICE OF MARKET
TARGETS
Shivam Verma || IIT Delhi
oAvoid consumer backlash
oPublic controversy due to unfair advantage of vulnerable groups
oFaulty products
