Marketing Strategy and Competitive Positioning pdf ebook

Figure 9.6 
Target 
market selection
Unattractive
Average
Attractive
Market segment attractiveness
Strongly
avoid
Weak
Current and
potential
company
strengths in
serving the
segment
Average
Strong
Avoid
Avoid
Possibilities
Possibilities
Prime targets
Possibilities
Secondary
targets
Secondary
targets
Figure 9.7 
Evaluating 
market targets 
for a hypothetical 
company
Market segment attractiveness
Unattractive
4
Average
5
1
6
7
3
2
Attractive
Current and
potential
company
strengths in
serving the
segment
Weak
Average
Strong

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CHAPTER 9 SELECTING MARKET TARGETS
lead to a profitable exploitation of the market (target 4). Market segments of medium 
attractiveness where the company has medium strength should be invested in selectively 
(targets 5 and 6). 
A further factor in selecting target markets for the overall business is how those indi-
vidual targets add up – the overall portfolio of businesses or markets the company is oper-
ating in (see Chapter 3 ). Companies are typically seeking to build a balanced portfolio of 
activities – balanced in terms of cash use and generation, risk and return, and focus on the 
future as well as on the present.
9.6 
Alternative targeting strategies 
The classic approach to segmentation or targeting strategies is provided by Kotler, most 
recently in Kotler and Keller (2016) . Kotler’s model suggests that there are three broad 
approaches a company can take to a market, having identified and evaluated the various 
segments that make up the total (see Figure 9.8 ). In addition to Kotler’s three approaches, a 
fourth category of customised marketing is emerging in all sectors of business: 
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