What is the process of evaluating segments and selecting one or more to enter called?

What is the process of evaluating segments and selecting one or more to enter called?

• A. Targeting
• B. Positioning
• C. Segmentation
• D. Differentiation

Answer: (A)

Targeting is the step where a company evaluates the different market segments and chooses which ones to enter. After the market is split into meaningful groups, each segment is analyzed for attractiveness—size and growth potential, accessibility, competitive intensity, and how well it aligns with the company’s capabilities and goals. The segment or segments that look most viable become the focus of the marketing effort, guiding product offerings, pricing, distribution, and promotion for those groups. Positioning comes next, shaping how the offering is perceived in the minds of the chosen segments, while differentiation is about making the product stand out from competitors within those segments. Segmentation, in contrast, is the process of creating the groups themselves, not selecting which to pursue.

Targeting is the step where a company evaluates the different market segments and chooses which ones to enter. After the market is split into meaningful groups, each segment is analyzed for attractiveness—size and growth potential, accessibility, competitive intensity, and how well it aligns with the company’s capabilities and goals. The segment or segments that look most viable become the focus of the marketing effort, guiding product offerings, pricing, distribution, and promotion for those groups. Positioning comes next, shaping how the offering is perceived in the minds of the chosen segments, while differentiation is about making the product stand out from competitors within those segments. Segmentation, in contrast, is the process of creating the groups themselves, not selecting which to pursue.