A SIMPLE EXAMPLE OF TARGET SEGMENT SELECTION

A SIMPLE EXAMPLE OF TARGET SEGMENT SELECTION - edge...

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A HYPOTHETICAL AND SIMPLE EXAMPLE OF SEGMENT EVALUATION AND TARGET MARKET SELECTION Product: Cellular Phones Demographic Segmentation Factor to Consider Segments Generation Y Generation X Baby Boomers Segment Size (Potential Number of Buyers) 5.5 million 8 million 7 million Segment Growth Rate 30 percent 20 percent 2 percent Number of Competitors 12 12 5 Competitors Major Brands Major Brands Major Brands Number of recently introduced brands that could be considered close substitutes by the segment 18 15 12 Access to major chains as channel of distribution Same level of difficulty for all segments Access to independent dealers Same level of difficulty for all segments Company’s access to technological know how to produce new products Not cutting edge Not cutting
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Unformatted text preview: edge Sufficient given the needs of this segment. Previous market success in the segment Mediocre Mediocre Not tried Objective: become one of the competitors with brand recognition Difficult Difficult May be done Some other factors that may be considered are listed below Bargaining power of buyers (especially important in B2B marketing) Bargaining power of suppliers (if different segments require us to use different suppliers) Established brand identity (may vary across segments) Financial resources of the company (big and high growth segments required more funding). We may consider factors other than the ones listed above depending on the specific product, industry and country....
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