Question

From your perspective as V.P. Marketing, discuss the process in choosing an attractive market segment. Please elaborate

Answer 1

Attractive market segment is essential for the long term profit and potential sales in the market place, where the large target audience are segmented into smaller groups who has similar traits, needs and desires. As a V.P. Marketing the process for choosing attractive market segment is as follows :

a. Firstly, the need of the customer must be determined, so that the competitive position and market attractiveness must be measured. Here, the threat of the new entrants, buyer's power, Industry rivalry and the relative market share must be identified.

b. Relative importance must be reflected to weigh competitive position and market segmentation, where the strategies required to create attractive market segment can be determined.

c. Factors such as needs, desires, age, buying power, beliefs etc must be studied to assess the current position of the target market before forming the strategies. Like for example, before launching a new beauty product in the Asian countries the target market that is women preferences, choices etc must be studied.

d. The competitive trends, market segment choices, environment of the market segment and position in the market must be determined for the number of prospective customers, revenue and growth rate in the determined market segment.

e. Possible future changes in the resources required for the product, business strategies etc must be evaluated so that the possible implications must be known in attractive market segment.