This PPT slide, part of the 109-slide Market Entry Strategy Toolkit PowerPoint presentation, titled "Customer Targeting and Value" outlines a framework for assessing the attractiveness of market segments through 2 primary dimensions: fit and economic attractiveness. The concept of "fit" refers to a business's capability to serve a segment in a unique manner, which is critical for differentiation. This involves evaluating the business's overall strategy and capabilities, as well as its competitive position within the market.

The slide breaks down the fit component into 2 key elements. The first element emphasizes the alignment of the business's strategic objectives with its operational capabilities. This alignment is essential for ensuring that the organization can effectively meet the needs of the target segment. The second element focuses on the existing market perceptions of the business, which can influence its competitive standing.

On the economic attractiveness side, the slide highlights profit potential, which is assessed through 3 factors: revenue potential, cost to serve, and buyer power. Revenue potential looks at the size of the market and the opportunities for generating income. Cost to serve evaluates the resources required to meet customer demands, while buyer power assesses the influence customers have over pricing and service terms.

The slide's structure indicates a systematic approach to segment evaluation, combining qualitative and quantitative assessments. This dual focus allows businesses to make informed decisions about where to allocate resources and how to position themselves effectively in the market. Understanding these elements can lead to more strategic targeting and ultimately drive better business outcomes.

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