Strategic Marketing: Planning and Control, Third Edition

overall position of the segment on each axis is established by multiplying
the ratings by the weighting given to each factor (see Chapter 6 for full
details). The result of such an exercise for an imaginary situation and
organisation is shown in Figure 9.6.
The most attractive segment is B as it lies in the box that is attractive on
the horizontal axis representing segment attractiveness and has a strong
fit with the company’s assets and competencies as represented on the ver-
tical axis. This segment should be a priority for the company. Segment A
is an attractive market but has only an average fit with the organisation’s
assets and competencies. This may have potential and would be a higher
priority for the organisation than segment E. Segment E has medium
attractiveness and medium fit with the organisations and should be select-
ively managed. The model suggests that targeting segments C and D is
likely to be a poor investment.
This example illustrates how an adapted portfolio model can act
as a screening device for identifying market segments that should be
targeted.

Targeting, positioning and brand strategy 187

Market segment attractiveness

Strongly

avoid Avoid Possibilities

Avoid Possibilities Secondarytargets

Fit with organisations assets andcompetencies

Possibilities Secondarytargets targetsPrime

Weak

Average

Strong

Unattractive

Average

Attractive

Figure 9.5

Adapted Shell

directional policy

matrix applied to

target market

selection (Source:

Shell, 1975)