Five general criteria are often used to pick target segments. They include the size of the
market, expected growth of the market, competitive position of the firm with respect to the
market, and compatibility with the organization's objectives and resources. What is the fifth
→ cost of reaching the segment
time required to create awareness
need to conform to government regulations
how long target market members have been customers
Segmenting a market requires a number of skill(s):
→ Strong analytical skills
Sound strategic thinking
Understanding of the consumer
All of these
In addition, a vision on where the market is heading and how this all fits with the company’s direction.
What is the seventh step in the eight-step process for segmenting a market?
Conduct a profit-and-loss financial analysis
→ Create a sales forecast
Identify the segment that best meets company objectives
Review company objectives
Refer to figure 6-1.