COMM 131 Chapter Notes -Abraham Maslow, Product Differentiation, Mass Customization
Document Summary
Evaluate each segment and decide how many and which segments it can serve best. Evaluating market segments: 3 factors to evaluate segment size and growth, segment structural attractiveness, and company objectives and resources. Interested in the segment with the right size and growth characteristics. Right size and growth" is relative largest and fastest-growing segments aren"t always the most attractive ones for every company; not compatible with resources, skills, etc. Examine major structural factors that affect long-run segment attractiveness (i. e. number and aggressiveness of competitors) Existence of actual or potential substitute products may limit prices and the profits that can be earned in a segment. The relative power of buyers also affects segment attractiveness. Strong bargaining power=certain price control, stronger service demands, and more aware of competitors" benefits. Segment may be less attractive if it contains powerful suppliers who can control prices/reduce the quality or quantity of ordered goods/services.
