Market Analysis
Market Analysis Module Three
This part of the marketing management Group Project will explain how we can evaluate the attractiveness of identified market segments and why I think our firm should pursue market specialization. I will explain how we can evaluate the attractiveness of identified market segments by identifying and explaining the five key criteria that make a segment plan useful followed by a brief description of how population size, growth rates, and scale of economies can affect profits and of course why we want this venture to be low risk. Next I explain market specialization and discuss why I think it is the most beneficial marketing option. I will begin by explaining how we can evaluate the attractiveness of identified market segments
1. How can your firm evaluate the attractiveness of each identified segment? According to (Kotler & Keller, 2012) page 231 a segmentation plan needs to be measurable, substantial, accessible, differentiable, and actionable. These are the five key criteria that make a segmentation plan useful. Measurability refers to the population size, purchasing power, and characteristics of the market segment. Knowledge of the total targeted segment’s population size and growth rates will give us a good idea of how many people will be interested in our product at any given time. A large number of interested buyers however, will not be very valuable unless they have purchasing power. The purchasing power of our market will help us determine the features and quality we can offer our customers. Knowing the characteristics of our segment will help us create valuable offers to meet our customers’ needs.
Substantial means the segment needs to buy sufficient volume to cover the cost of the firm and return a profit. This is important for us because we’re selling the kindle for $300.00 less than the top competitor. This will mean what we will have to make our profit by selling in high quantity and keep our operating
This part of the marketing management Group Project will explain how we can evaluate the attractiveness of identified market segments and why I think our firm should pursue market specialization. I will explain how we can evaluate the attractiveness of identified market segments by identifying and explaining the five key criteria that make a segment plan useful followed by a brief description of how population size, growth rates, and scale of economies can affect profits and of course why we want this venture to be low risk. Next I explain market specialization and discuss why I think it is the most beneficial marketing option. I will begin by explaining how we can evaluate the attractiveness of identified market segments
1. How can your firm evaluate the attractiveness of each identified segment? According to (Kotler & Keller, 2012) page 231 a segmentation plan needs to be measurable, substantial, accessible, differentiable, and actionable. These are the five key criteria that make a segmentation plan useful. Measurability refers to the population size, purchasing power, and characteristics of the market segment. Knowledge of the total targeted segment’s population size and growth rates will give us a good idea of how many people will be interested in our product at any given time. A large number of interested buyers however, will not be very valuable unless they have purchasing power. The purchasing power of our market will help us determine the features and quality we can offer our customers. Knowing the characteristics of our segment will help us create valuable offers to meet our customers’ needs.
Substantial means the segment needs to buy sufficient volume to cover the cost of the firm and return a profit. This is important for us because we’re selling the kindle for $300.00 less than the top competitor. This will mean what we will have to make our profit by selling in high quantity and keep our operating
References: Kotler, P., & Keller, K. L. (2012). Marketing management. (14 ed.). New York, NY: Prentice Hall. (2004). The merriam-webster dictionary. (12 ed.). Springfield: Merriam Webster Mass Market. groppelli, A., & nikbakht, E. (2006). Finance, capital budgeting and management. Hauppauge, NY: Barron 's Educational Series, nc.