s segments in order to select segments that have the right size and growth characteristics. Next, the company examines the structural attractiveness of the segments, including: current and potential competitors; substitute products; and power of buyer and suppliers (if you wish to read more on structural attractiveness, refer to Michael Porter's Five Forces). Finally, the company must consider the segment with regards to its objectives and resources. If a segment is in line with company objectives, the company must still consider if it has the superior skills and resources in comparison with competition to succeed in that segment.Target Market SelectionAfter evaluating the various market segments, a company must choose one or more of these segments to make up its target market. Therefore, a target market is a set of buyers with common characteristics which a company decides to serve. The company has three market-coverage strategies available to it in selecting target markets. 1.Undifferentiated marketing A company adopting an undifferentiated marketing strategy would ignore differences between market segments, and approach the market as a whole with one market offer. This strategy focuses on common buyer needs rather than what is different, and is designed to appeal to the largest number of buyers. Such a strategy provides cost economies, but difficulties can arise in the development of a product or brand that can satisfy all buyers. 2.Differentiated marketing A company utilising a differentiated marketing strategy targets several market segments, with separate marketing mixes for each segment. Differentiated marketing has become increasingly popular with companies eg. Coles Myer as it often creates higher sales levels than undifferentiated marketing. However, it also increases costs, as the marketing mix has to be modified in conjunction with different segments' needs eg. different products, different advertising. 3.Concentrated market...
