Topics
target market, segmentation, market attractiveness, analysis
Teaching Notes
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- Overview: In this activity, students will review a simple table containing top-level information on several markets/segments and they need to identify which segments are the most attractive, considering trade off information. The purpose of this exercise is for students to understand that there is an array of factors that need to be considered when selecting target markets, not just financial aspects.
- Teaching Level: Basic/introductory – this exercise could be run with most students and no real assumed knowledge is required.
- Suggested Structure: This task can be run either as an individual task – or as a small group discussion.
- Approximate Timing: Allow around 20 minutes to select markets and respond to the questions below the table.
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Review the activity below or download the PDF student worksheet
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- Student Worksheet: Choosing a Target Market
- Instructor Solutions (Members Only): Choosing a Target Market = Solutions
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Student Discussion Activity
Best Target Market?
Your task in this activity is to review the table below, which provides top-level information for eight different market segments.
Based upon the information provided, you need to identify target market would you select as the best one/s to pursue, as well as addressing the various questions presented.
| Segment | Size $m | Growth %pa | Competitiveness | Access to Retailers |
| A | 100 | 5 | Medium | Easy |
| B | 100 | 20 | Aggressive | Hard |
| C | 75 | 5 | Medium | Medium |
| D | 75 | 20 | Aggressive | Hard |
| E | 50 | 5 | Friendly | Easy |
| F | 50 | 20 | Medium | Easy |
| G | 25 | 5 | Friendly | Easy |
| H | 25 | 20 | Medium | Easy |
Student Discussion Questions
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- Which segment/s are the most attractive? Why?
- Which segment/s would you NOT target? Why not?
- In real business life, what other information would you need to help you select the best target market for a firm?
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