Criteria for selecting potential target market Flashcards
Criteria for selecting potential target market
Size and Growth Possibilities Attractiveness and profitability Resources & Skills of an Enterprise Compatibility with Enterprise Objectives Cost of Reaching Target Markets
Size and Growth Possibilities
Target market does not have to be big, as long as there is potential for growth.
Segment must be sustainable.
Attractiveness and profitability
Attractiveness of a market lies within it’s long term profitability.
Resources & Skills of an Enterprise
Segment opportunities can only be utilised if it fits into the long term objectives of management.
Compatibility with Enterprise Objectives
Choice of target market must take in consideration the compatibility with enterprise objectives.
Cost of Reaching Target Markets
If the cost of reaching potential target markets are to high, that target market should not be considered.