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MCOM 2nd Year Global Segmentation To Trade Study Material Notes


Targeting is the act of evaluating and comparing the identified groups and a then selecting one or more of them as the prospect(s) with the highest potential. SC A marketing mix is then devised that will provide the organisation with the ar best return on sales while simultaneously creating the maximum amount of value to consumers.


The basic criteria for assessing opportunity in global target markets are:

1. Compatibility and Feasibility. If a global target market is judged to be large enough, and its strong competitors are either absent or not deemed to represent insure mountable obstacles, then the final consideration is whether a company can and should target that market. In many cases, reaching global market segments requires considerable resources such as expenditures for distribution and travel by company personnel. Another question is whether the pursuit of a particular segment is compatible with the company’s overall goals and established sources of competitive advantage.

2. Potential Competition. A market or market segment characterised by strong competition may be a segment to avoid or one in which to utilise a different strategy. After a local brand may present competition to the entering

multinational. The multinational might try more or different promotions or may acquire the local company or form an alliance with it.

3. Current Segment Size and Growth Potential. Marketer has to see and judge the size of the market segment by asking the question–Is the market secment currently large enough that it presents a company with the opportunity to make a profit? If it is not large enough or profitable enough today, does it have high growth potential, so that it is attractive in terms of company’s longterm strategy? Indeed, one of the advantages of targeting a market segment globally, is that where on the segment in a single country market might be too small, even a narrow segment can be served profitably with a standardised a product if the segment exists in several countries.

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