Explain how companies identify attractive market segments and choose a target marketing strategy

What will be an ideal response?


To target the best market segments, the company evaluates each segment's size and growth characteristics, attractiveness, and compatibility with brand objectives and resources. The company then chooses a marketing strategy, ranging from very broad to very narrow targeting. The seller can ignore segment differences and target broadly using undifferentiated marketing. This involves mass-producing, mass-distributing, and mass-promoting nearly the same product in about the same way to all consumers. Or the seller can adopt differentiated marketing?developing different market offers for several segments. Niche marketing involves focusing on only one or a few market segments. Which targeting strategy is best depends on company resources, the product, and competitors' strategies.

Business

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