evaluation of market segments

Evaluation of market segments:

 In evaluating different market segments, the firm must consider the following factors:

•  Segment attractiveness: variables such as size, growth, profitability, level of competition etc. are considered under segment attractiveness. The size of the market segment, the number of potential customers, the potential of business growth, the level of profitability and level of competition Brand loyalty of existing customers in the segment.in conclusion the overall market segment attractiveness is analyzed before investment.

•  Organizational objectives and resources: does investing in the segment make sense given the firms objectives, competencies and resources? Whether the firm can offer superior value to the customers in the segment? The impact of serving the segment on the firm's image? Access to distribution channels required to serve the segment, The firm's resources vs. capital investment required to serve the segment, does the segment comply with company’s long term objectives, should also be analyzed.

• Ethical consideration: Morality issues with certain market segments should also be analyzed. such as cigarettes, liquor in some geographical regions are considered immoral and unethical

• Government policies:  another consideration is governments’ stance on some market segments such as liquor, cigarettes.