Study Notes for target market selection

By Geoff Fripp /

Outline of the target market selection evaluation criteria

Target markets should be evaluated on:

Financial Issues

Segment size
Segment growth rate
Profit margins

Structural Attractiveness

Competitors (direct and indirect)
Competitive rivalry
Access to distribution channels
Current channel relationships

Strategic Direction

Fit with the firm’s strategic future
Growth expectations
Marketing Expertise

Resources (financial position and staff resources)

Capability (to develop products and compete)
Importance of brand equity (ability to leverage, dilution concerns)

Opportunity Cost

Are other growth options more attractive?

The target market selection process

Starts with the market segment profiles
Assesses the market segment against the criteria/evaluation checklist (listed above)
Usually scores/rates each segment will against the assessment items in the checklist
Some firms may considers the importance of each factor (and assign a weighting)
Then a final overall assessment is generated
Appropriate target markets are then selected

Related Topics

Study Notes for Target Markets

Study Notes for Market Segmentation Evaluation Criteria

About The Author

Geoff Fripp

Geoff Fripp is a highly experienced marketing lecturer, a published textbook author, and has had an extensive corporate career in marketing. He has taught marketing at all levels for more than 20 years across ten different Australian universities, and has held senior marketing roles at six firms, primarily in the financial services sector.