ACTIVITY 6: Identifying Target Markets

In this chapter you learned that effective segmentation, target marketing, and positioning favorably impact marketing management. For purposes of your marketing plan, well leave the specifics of developing your overall positioning strategies to the upcoming chapters on the marketing mix. At this point, the following steps are needed.

1. Consider the various approaches to segmenting your market(s). What segmentation approaches do you recommend? Why do you recommend those approaches over other available approaches?

2. Evaluate your proposed segments against the criteria for effective segmentation. What does this evaluation lead you to conclude about the best way to proceed?

3. Systematically analyze each potential segment on your list using the three steps you learned in the chapter:

(1) assess each in terms of segment size and growth potential, segment competitive forces, and strategic fit of the segment;

(2) for the short set that emerges, develop profiles of each potential target market, then identify each of your final set as primary, secondary, tertiary, or abandoned;

(3) select the target marketing approach for each of your primary targets.

4. Identify the likely sources of differential advantage on which you will focus later in developing your positioning strategies.