Strategic Marketing: Planning and Control, Third Edition

■ The strategic nature of making

target segment choices

However, as has already been stated segmentation is a strategic process

where qualitative and creative judgements have to be taken. Opportunities

have to be evaluated on their strategic fit. Not only do the assets and com-

petencies of the organisation have to have synergy with a particular mar-

ket segment, but wider issues have to be considered as well. Opportunities

also have to be evaluated on the following somewhat subjective criteria:

● Ability to allow the creation of a sustainable market position.

● Compatibility with the corporate mission.

● Consistency with organisation’s values and the culture. Segments that

are a radical departure from current practice may challenge the pre-

vailing values in the organisation and the established status quo. The

new segment may challenge the current power structure within the

organisation, which will create influential barriers to implementation.

● Ability to provide a focal point for action and future development in

the organisation.

● Ability to facilitate an innovative approach to market entry.

● Ability of the current organisational structure to service the target

market. Does this opportunity lie between two areas of responsibility

in the current organisational structure. This may lead to the opportun-

ity never being seriously addressed.

● Compatibility with current internal information flows and reporting

lines. Difficulties will arise where a segment does not sit easily with

188 Strategic Marketing: Planning and Control

Weak

Average

Strong

Unattractive Average Attractive

D^

C

E

A

B

Figure 9.6

Evaluating market segments

segments for an
imaginary
organisation/
situation