how should a company choose the most attractive target market

IDENTIFYING MARKET SEGMENTATION AND TARGETS

CREATED BYPARAMPREET SINGHTU, PATIALA

HOW SHOULD A COMPANY CHOOSE

THE MOST ATTRACTIVE

TARGET MARKET?

THERE ARE FIVE DIFFERENT

WAYS

1. INDUSTRY COMPETITORS

NECK TO NECK COMPETITION IN MOBILE INDUSTRY

• PRICE WARS

• ADVERTISEMENT WARS

• INTRODUCTION OF NEW TECH.

• QUALITY WARS

• REACHABILITY

• SERVICES

2. POTENTIAL ENTRANTS

THE TARGET MARKET SHOULD HAVE HIGH ENTRY BARRIERS AND LOW EXIT BARRIERS

• CONSULTING FIRMS ARE HIGH ENTRY BARRIERS

• EDUCATION FIRMS ARE LOW EXIT BARRIERS

3. SUBSTITUTES

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

4. BUYERS BARGAINING

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

5. SELLERS BARGAINING

THE COMPANY SHOULD CHOOSE THAT MARKET IN WHICH THE SUPPLIER DONOT RAISE PRICES

AND REDUCE QUALITY OF PRODUCT

DISCLAIMER

THIS PRESENTATION IS CREATED BY PARAMPREET SINGH, TU, PATIALA DURING A MARKETING INTERNSHIP BY PROF. SAMEER

MATHUR, IIM LUCKNOW

( WWW.IIMINTERNSHIP.COM)