Market identification

Market identification, which is similar to delineate an area in military art, is an necessary job before deciding how to attach the target. In marketing, a market constituted by a demand and products, services, solution to adapt such demand. Additionally, they are all products, service, solutions, which are replaceable and can be replaced.

Identify the targeted market

Applying market segment makes the company have a clearer look about the market, the demand, and the need of customers and find out the business opportunities. However, to choose one ore more targeted segment from the segments that the company has “identified”, the company should study and evaluate 2 factors:

  • The attractiveness of the segment
  • The competitive advantaged of the market

1.   The attractiveness of the market

To evaluate the attractiveness of a segment (market), the CMO will evaluate basing on herewith criteria:

  • Size of the market (global revenue, total production consumed, total demand)
  • The speed of growth (% of yearly growth comparing to last year)
  • Competition (number of competitors and level of competition)
  • Customer size (the buying power of the customer)

Note

  • Depending on the characteristics of each kind of business, the CMO can modify and launch a set of suitable criteria for evaluating.
  1. The competitive advantage of company

The competitive advantage of te company is the competitive ability of a company comparing to the other competitors in a segment (market) with respect to the criteria of deciding to buy products of customer, such as:

  • Product quality
  • Customer service
  • Packing
  • The coverage of distribution channel
  • Brand
  • Promotion
  • Technical support
  • Payment form and conditions
  • Sale team

Note

  • Depending on the characteristics of each kind of business, the CMO can modify and launch a set of suitable criteria for evaluating.
  • The evaluating criteria of B2B and B2C are different.

 

Finally, in order to evaluating the competition in a segment (market), the company should know the needs of the customer and research the ability of the both our company and our rivals participating in the same market. On such foundation, we can give the correct evaluations of the competitive position of our competitors.

Defining the targeted market

From the detail attractive data of segments of a market and the overall picture of our competitors’ positions in specific segment, CMO can decide the segment (market) where they can or cannot compete. On the other hand, CMO has enough data to choose the targeted market for their company in the upcoming time.