Basics of Marketing - Kotler Philip

Selection of target markets

The process of identifying and assessing market opportunities usually generates many new ideas. And often the real task of the firm is to select the best ideas from a number of good ones, that is, in the selection of ideas that correspond to the goals and resources of the firm.

Evaluation of market opportunities in terms of objectives and resources of the firm

Fig. 8. Evaluation of market opportunities in terms of objectives and resources of the firm

Suppose that the company "Helen Curtis" has evaluated a number of market opportunities and found that one of the most attractive? Market "means for headache." The management can calculate that the introduction of the funds from the headache in the assortment is consistent with the goals and resources of the firm. The product of this type will fit well within the existing marketing advantages of the firm in the form of a powerful sales force, an extensive distribution network and extensive experience in promoting the distribution of packaged consumer goods.

Well, more specifically, "Helen Curtis" should be sure that it will successfully work with the most important representatives of the market for funds from headaches; That he will be able to establish good relations with suppliers of raw chemicals, necessary equipment and other materials for new production; That has strong links with the main marketing intermediaries that will deliver its product to customers; That will develop such a remedy for a headache that will have attractive differences from similar drugs offered by competitors. And finally, the firm must be sure that its penetration into this sphere of activity will not cause irritation to the public.

In addition, every opportunity should be studied in terms of the size and nature of the market. This process consists of four stages: measuring and forecasting demand, segmenting the market, selecting the target market segments and positioning the goods on the market.