How do companies choose most attractive target markets?

How do companies identify attractive market segments?

How do companies identify attractive market segments to target? Answer: To target the best market segments, the company first evaluates each segment’s size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources.

How are target markets selected?

Target market selection process involves the evaluation of the attractiveness of every market and selection of one or more profitable markets. An organization considers various factors, such as size and growth of a particular segment. It tries to understand the customers and competitive environment.

What are the major reasons behind selecting a target market?

Having the right target market helps you determine where to find potential clients who are looking for what you have to offer. If you have a target market, you know where to concentrate your marketing efforts and what to offer that is compelling and well received.

When selecting a target market firms will be most successful if they?

Firms will usually find the most success if they choose attractive segments whose needs match the firm’s competencies.

How do I choose a market?

When you choose a market, you should consider five main factors:

  1. How many customers are in the market?
  2. Can these customers pay for your products or services?
  3. Do these customers have the need you solve?
  4. How many competitors are competing for your customers’ business?
  5. How does your business compare to your competitors?
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