Market Segment Selection Pattern

Having evaluated different segments, a company can consider from several patterns of target market selection.

  1. Single Segment Concentration.

By adopting this pattern, a firm concentrates on a single segment for exploitation for example Subaru car manufacturers concentrate on small car market. If a firm captures leadership in a given segment it can earn high return on investment.

single segment

  1. Selective Specialization.

A firm selects a number of segments each objectively attractive and appropriate given the firm’s objectives and resources. This strategy has the advantage of diversifying the firm’s risks. If one segment becomes unattractive the firm can continue earning from the other segments.


  1. Product Specialization.

In this case a firm concentrates on making a certain product that it sells to several market segments for example a microscope manufacturer  can sell microscopes to university labs as well as commercial labs. The firm makes different microscopes for different customer groups but does not manufacture other investments that labs may use. The risk would occur if an entire technique is introduced.


  1. Market specialization.

In this case a firm concentrates on serving many needs of a particular group for example a firm that sells assortments of products that may be required university labs. The firm can be used in future as a channel for more products that the customer would require. The risk would occur if the customer changes preferences.


  1. Full market coverage.

The firm attempts to sell all customer groups with all the products they might need. Huge resources are required to undertake this market strategy.

Full market coverage

Post Author: Sam Muya