Factors affecting targeting decisions strategy

 

Stage of product-market maturity

most critical at the maturity stage of the product market - e.g. substitute products. Buyer's needs are different at the maturity stage.

Extent of diversity of buyers' wants and needs

extensive segmentation options are limited when wants and needs are basically similar.

Market position

low market share firms can strengthen their position by finding a segment where they have a differential advantage to large competitors.

Structure and intensity of competition

selective targeting might be best in intense competition.

Corporate resources and capabilities

 

Economy of scale considerations

 

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