step 5 in segmenting and targeting markets

Step 5: Evaluate Markets - The final step in market segmentation and targeting is to evaluate potential target markets. This step involves analyzing data on the characteristics and needs of each segment, assessing their value to the business, and determining which segments offer the greatest potential. Companies consider factors such as projected sales, profit potential, competitive intensity, and cost of entry when making their decision. After analyzing the results, a company may decide to pursue one or more target markets. The company should then create a comprehensive marketing strategy to reach its desired segments.