There are five ways to identify market segmentation and targets: 1) Industry competitors where there are price, advertisement, technology, quality and service wars; 2) Potential entrants where the target market should have high entry barriers and low exit barriers; 3) Substitutes where the target market should not have existing or potential substitutes; 4) Buyers bargaining where the target market has the least buyer bargaining power; 5) Sellers bargaining where the company chooses a market where suppliers do not raise prices or reduce product quality. The document was created by Parampreet Singh during a marketing internship.

1. IDENTIFYING
MARKET
SEGMENTATION
AND TARGETS
CREATED BY
PARAMPREET SINGH
TU, PATIALA

3. THERE ARE FIVE
DIFFERENT
WAYS

4. 1. INDUSTRY
COMPETITORS

5. NECK TO NECK
COMPETITION IN MOBILE
INDUSTRY
• PRICE WARS
• ADVERTISEMENT WARS
• INTRODUCTION OF NEW TECH.
• QUALITY WARS
• REACHABILITY
• SERVICES

6. 2. POTENTIAL
ENTRANTS

7. THE TARGET MARKET
SHOULD HAVE HIGH ENTRY
BARRIERS AND LOW EXIT
BARRIERS
• CONSULTING FIRMS ARE HIGH ENTRY
BARRIERS
• EDUCATION FIRMS ARE LOW EXIT
BARRIERS

8. 3. SUBSTITUTES

9. SEGMENTS SHOULD TARGET
THOSE MARKET WHICH DONOT
HAVE AN EXISTING OR
POTENTIAL SUBSTITUTE AS IT
WILL HINDER AND POSE A LIMIT
TO PROFITS

10. 4. BUYERS
BARGAINING

11. THE TARGET MARKET IS
THE ONE WITH LEAST
BUYER BARGAING POWER
THIS COULD ALSO BE
ACHIEVED BY OFFERING
SUPERIOR OFFERS WHICH
THE STRONG BUYERS
CANNOT REFUSE

12. 5. SELLERS
BARGAINING

13. THE COMPANY SHOULD
CHOOSE THAT MARKET IN
WHICH THE SUPPLIER
DONOT RAISE PRICES AND
REDUCE QUALITY OF
PRODUCT

14. DISCLAIMER
THIS PRESENTATION IS CREATED BY
PARAMPREET SINGH, TU, PATIALA
DURING A MARKETING INTERNSHIP BY
PROF. SAMEER MATHUR, IIM LUCKNOW
( WWW.IIMINTERNSHIP.COM)