Marketers evaluate market attractiveness at several key stages of the marketing process, typically:
Strategic Planning: During the development of a long-term marketing strategy, assessing market attractiveness helps determine which markets offer the best opportunities for growth and profitability. This involves analyzing factors like market size, growth rate, competitive intensity, and potential for differentiation.
New Product Development: Before investing heavily in a new product or service, marketers evaluate the attractiveness of the target market to ensure there's sufficient demand and potential for adoption. This assessment includes understanding customer needs, preferences, and willingness to pay.
Market Entry Decisions: When considering expanding into a new geographic region or demographic segment, marketers must carefully assess the attractiveness of that market. This involves analyzing local market conditions, regulatory environment, cultural factors, and the competitive landscape.
Investment Decisions: When allocating resources for marketing campaigns or other initiatives, marketers evaluate market attractiveness to prioritize investments in areas with the highest potential return. This may involve comparing the attractiveness of different market segments or product categories.
Portfolio Management: Companies with a diverse portfolio of products or businesses need to periodically assess the attractiveness of each market they serve. This helps them make informed decisions about resource allocation, divestitures, and future investments.
Mergers and Acquisitions (M&A): Before acquiring another company, marketers evaluate the attractiveness of the target company's markets. This due diligence helps determine the potential value and synergies of the acquisition.
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