Prioritize them based on attractiveness and alignment with company goals.
Determine the number of market segments the business can serve.
To assess how correctly the segments have been identified, the following criteria are used:
Measurability: Potential capacity, profitability and other characteristics must be measurable.
Materiality: the selected group is as homogeneous as possible.
Reachability: The segment can be used to build communication and interaction.
Key differences: the presence of clear differences in reactions and behavior. For example, if married and unmarried women react to perfume in the same way, there is no point in separating them into different segments.
Manageability: each segment must have its own interaction strategies.
Next, you need to understand whether it is worth concentrating efforts on working with vp quality email lists each of the segments, or leaving those that are more likely to influence sales success.
For this purpose, M. Porter's approach with assessment according to five criteria is usually used:
Number of competitors - if a segment has many strong competitors, the segment is unattractive.
Easy business launch: if it is difficult to enter the market, but easy to exit, this is an attractive area, since competition sooner or later decreases. The most difficult is when the entry barrier is low, and the exit price is high: the risks of oversaturation are high.
. If the market is actively developing technologies that reduce the cost and expand the production of similar goods, then it is unattractive: as substitute goods appear, prices and profits will decrease.
Buyer power - a market segment is not attractive if consumers are highly consolidated, product costs take up a large share of their wallet, but the product itself does not have unique characteristics, so buyers can easily switch to a similar one from another manufacturer.
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