how should a company choose the most attractive target market
TRANSCRIPT
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)