TRC gives four examples of this method's application with results.
Current Segment Size and Growth Potential Is the market segment currently large enough to make a profit? Consider these facts about India: As noted earlier, one of the advantages of targeting a market segment globally is that, while the segment in a single-country might be small, even a narrow segment can be served profitably if the segment exists in several countries.
In the case of a huge country market such as India or China, segment size and growth potential may be assessed in a different manner. The appropriate decision may be to target urban areas only. Potential Competition A market segment or country market characterized by strong competition may be a segment to avoid.
However, if the competition is vulnerable in terms of price or quality, the newcomer can make inroads. Over the past several decades, for example, Japanese companies in a variety of industries targeted the U. Honda first created the market for small-displacement dirt bikes.
Canon outflanked Xerox by offering compact desktop copiers; however, Acer failed to make headway in a U.
Feasibility and Compatibility If a market segment is judged to be large enough, and if strong competitors are either absent or deemed to be vulnerable, then the final consideration is whether a company can and should target that market. The feasibility of targeting a particular segment can be negatively impacted by various factors.
For example, significant regulatory hurdles may be present that limit market access. A company may also encounter cultural barriers. Other marketing issues may arise such as in India, it takes 3 — 5 years to build a distribution system for many consumer products. To make this decision, a marketers must consider several criteria: If so, is this economically justifiable in terms of the expected sales volume?
In many cases, reaching global market segments requires considerable expenditures for distribution and travel by company personnel.
Would it make sense to source products in the country for export elsewhere in the region? A Framework for Selecting Target Markets As one can infer from this discussion, it would be extremely useful to have formal tools or frameworks available when assessing emerging country markets.
Table presents a market selection framework that incorporates some of the elements just discussed. Using China, Russia, and Mexico as potential country target markets, the table shows the countries arranged in declining rank by market size.
Initially, China seems to hold the greatest potential, based on size. However, the competitive advantage of our hypothetical firm is. Multiplying the market size and competitive advantage index yields a market potential of 7 in China, 5 in Russia, and 4 in Mexico.
The next stage in the analysis requires an assessment of the various market access considerations. In Table all these conditions or terms are reduced to an index number of terms of access. Multiplying the market potential by the terms of access index suggests that Mexico holds greater export potential than China or Russia.
What is a product-market?Segmentation strategies: There are many ways in which a market can be segmented. A marketer will need to decide which strategy is best for a given product or service. Identify the five basic segmentation strategies. Give an example of a company that has used each one.
Global market segmentation identifies and groups customers or countries according to . Identify the five basic segmentation strategies. Give an example of a company that has used each one. alphabetnyc.com market segmentation identifies and groups customers .
Approaches to subdivision of a market or population into segments with defined similar characteristics. Five major segmentation strategies are (1) behavior segmentation, (2) benefit segmentation, (3) demographic segmentation, (4) geographic segmentation, and (5) psychographic segmentation.
5 Customer Segmentation Strategies for Dominating Your Market. by Scott Maxwell December 11, Below are five basic strategies for you to consider that will help you think about which potential customers you should be focusing on. Your mission is to figure out which ones are best for you and how to execute them.
OpenView® and. Market segmentation YORAM (JERRY) WIND and DAVID R. BELL All markets are heterogeneous. This is evident from mentation of segmentation strategies.
The revolu- encompasses five areas: 1 Use of segmentation in marketing and business strategy.