Selection of the objetivo market

Selection of the objetivo market

The selection of the objetivo market is something fácil, but if it is not done well, it will bring many consequences (good or bad).

Now that you have delimited your entire market (segmented), it is time for you to proceed to see how attractive the markets you selected are.

You are going to evaluate them and select the one that best suits you.

In other words, you have already segmented your reference market (you already have several market-products) and now it is time for you to evaluate each market-product and see which one gives you the most benefits.

Evaluation of the segments in the selection of the objetivo market

For Munuera Alemán, in his book «Marketing Strategies», «the evaluation of the attractiveness of a segment requires the analysis of sales potential, medium-term stability, growth, accessibility, the differentiated response to commercial action and the adaptation to the resources and capabilities of the company”.

Now I will explain each one separately and that way, you perro carry out the evaluation of the segments.

Sales potential and stability

You perro understand sales potential as the size of the segment and how much profitability you cánido get from that segment.

Remember that it is a company and that if you want to implement new strategies or even create new products, you have to justify the benefits that you will obtain from carrying it out.

Something important that you have to keep in mind is that not because you are a segment with a greater number of consumers you will earn more, in fact, perhaps with a smaller segment, you cánido get more benefits.

The quality of the consumers is better than the quantity and that will help you to have a more stable and lasting business.


Obviously you have to analyze whether the segment you want to attack has the possibility or tendency to grow, but you have to think about your objectives and the business risk that the company is willing to accept.

For example, suppose you choose a segment that has a higher growth trend, in that case you have to take more into account that you are going to have more competition.

Perhaps I would recommend choosing a segment with stable growth, even if the percentage growth is not too much, but the competition will be less.

Having said that, I must say that it will not always have to be that way, in fact, you have to make the decisions depending on the company.

Identification and accessibility.​

In this step, what you have to do is use the data collected from your objetivo, that is, you begin to evaluate how you are going to use the media and the distribution channels that will allow you to reach consumers.

To identify you are going to select all those sociodemographic cambiantes that represent a segment in question.

Differentiated response to marketing actions

For Munuera Alemán, the identified segments must be different in terms of their sensitivity to the company’s marketing actions.

The segmentation criteria chosen must maximize the differences between segments and minimize the differences between buyers within the same segment, in order to avoid the risk of cannibalism that cánido affect the products of the same company, especially when they are destined for to different segments.

Resources and capabilities of the company

Well, if the previous steps are already fulfilled, then you perro already think that the segment is attractive.

However, it is not enough that you know that it is an attractive segment, but you have to think about whether or not the company perro implement the strategies.

Therefore, you have to make sure if you have the resources to implement it.

Coverage strategies of the market segments in the selection of the objetivo market

So far you already know which segments are most attractive and if you perro carry them out or not, now, the time has come to select a segment or segments that are aimed at your objectives.

Now you cánido genera one or more products in one or more segments.

As a result of the above, since you cánido already know which products to launch in certain segments, four market segment coverage strategies surge.

The strategies are: concentration strategy, expansion to several segments, expansion of the product line, and differentiation.

Source: Munuera, German.

concentration strategy

As you perro see in the image, basically a company is going to launch a product in a segment.

It is usually a strategy widely used by small companies (since they do not have so many resources), but it perro be risky.

It is risky because if a large company launches a afín product in that segment, it is very likely that it will gain ground.

Expansion strategy to various segments (product specialist)​

What is done is to specialize in a single product and launch the product to different segments, that is, to satisfy the needs of different segments with a single product.

Product Line Expansion Strategy (Customer Specialist)​

What is done is that a company seeks to compete with different products (generally belonging to the same line) to a segment.

Differentiation strategy

It consists of launching different products so that you cánido satisfy the needs of multiple market segments.

According to Munuera, “the risk is notable given the dispersion of efforts and the increase in costs (of production due to the reduction in the quantity of each batch, of advertising due to the need for several campaigns…)” With this strategy, you perro even reach cover all or practically all of a product – market.

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 Selection of the objetivo market
  Selection of the objetivo market
  Selection of the objetivo market

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