How Companies Identify Attractive Market Segments And How They Choose A Target Marketing Strategy?

There are various ways through which the companies can identify the attractive market segments but the most popular approach is that the company evaluates each segment on the basis of some factors. For examples, all segments are evaluated on the basis of their size(number of customers). The growth rate of each segment is explored and the competition which the company has to face in each segment in determined. The company also determines the brand loyalty of each segment and attainable market shares are calculated. The organization then determines the required market shares at break even point and matches the profit margins of each segment. The segements which are more profitable for the company are then selected as target market. On the basis of the needs and demands, affordability of the targeted segment, their geographical access and their exposure to different medias, the company selects the marketing strategy for the target segments.