how should a company choose the most attractive target market
TRANSCRIPT
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IDENTIFYING MARKET SEGMENTATION AND TARGETS
CREATED BYPARAMPREET SINGHTU, PATIALA
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HOW SHOULD A COMPANY CHOOSE
THE MOST ATTRACTIVE
TARGET MARKET?
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THERE ARE FIVE DIFFERENT
WAYS
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1. INDUSTRY COMPETITORS
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NECK TO NECK COMPETITION IN MOBILE INDUSTRY
• PRICE WARS
• ADVERTISEMENT WARS
• INTRODUCTION OF NEW TECH.
• QUALITY WARS
• REACHABILITY
• SERVICES
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2. POTENTIAL ENTRANTS
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THE TARGET MARKET SHOULD HAVE HIGH ENTRY BARRIERS AND LOW EXIT BARRIERS
• CONSULTING FIRMS ARE HIGH ENTRY BARRIERS
• EDUCATION FIRMS ARE LOW EXIT BARRIERS
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3. SUBSTITUTES
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SEGMENTS SHOULD TARGET THOSE MARKET WHICH DONOT HAVE AN EXISTING OR POTENTIAL SUBSTITUTE AS IT WILL HINDER AND POSE A LIMIT TO PROFITS
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4. BUYERS BARGAINING
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THE TARGET MARKET IS THE ONE WITH LEAST BUYER BARGAING POWER
THIS COULD ALSO BE ACHIEVED BY OFFERING SUPERIOR OFFERS WHICH THE STRONG BUYERS CANNOT REFUSE
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5. SELLERS BARGAINING
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THE COMPANY SHOULD CHOOSE THAT MARKET IN WHICH THE SUPPLIER DONOT RAISE PRICES
AND REDUCE QUALITY OF PRODUCT
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DISCLAIMER
THIS PRESENTATION IS CREATED BY PARAMPREET SINGH, TU, PATIALA DURING A MARKETING INTERNSHIP BY PROF. SAMEER
MATHUR, IIM LUCKNOW
( WWW.IIMINTERNSHIP.COM)