No single offer or approach will appeal to all buyers.

This means that companies must make a choice regarding which

markets, out of all the possibilities, they wish to serve.
Target market selection is the act of developing measures of segment attractiveness and selecting one or more of the
identified segments to enter and emphasize. Table 11 asks you to make a list of all the possible target markets for your
product or service that you would consider entering.

Based on the list in Table 11, select the two most attractive market segments to serve. Keep in mind your firm’s com-
petitive advantages and disadvantages when stating your answer. These will become your target markets.

1. commercial market

2. residential market

The final step of the STP strategy involves the establishment of a positioning strategy. Positioning includes decisions in
product, price, distribution, and promotion. Each of these is the subject of a workbook unto itself. Remember, once you
have determined the one or two markets you want to target, you need to decide how to position your product or service in
the minds of potential customers, relative to your competitors.

Table 1. Identification of customer segments and their marketing characteristics

Customer Segment Characteristics, Hot Buttons, and Unmet Needs (O) or (T)* Evidenc
e
Commercial Looking to decorate their offices at an affordable price O Small businesses are just setting
up shops looking to create an
attractive showroom. Businesses
who want to increase their
employee or customer experience
want to décor the office.
Residential New or existing homeowners wanting to décor their home O Customers who want to revamp
their home or customers who
bought a new home looking to
décor their home according to
their taste.
Designing professionals Event planners or architects looking to collaborate with designers O Event planners, architects,
realtors desiring to collab with
designers to create a sample or to
work on a project to present their
potential and taste.
Source: Wysocki and Wirth (1999).
* (O) = Opportunity; (T) = Threat.

Table 2. Competitor analysis

Competitor Examples of Competitor Skill (O) or (T)* Evidenc
e
Done Well
Could Be Better
Done Well
Could Be Better
Done Well
Could Be Better
Source: Wysocki and Wirth (1999).
* (O) = Opportunity; (T) = Threat

Table 3. Industry analysis worksheet

Major Market Trend (O) or (T)* Evidence
 Key Success Factor (O) or (T)* Evidence

Source: Wysocki and Wirth (1999).

(O) = Opportunity; (T) = Threat.
Table 4. Competitive force checklist for threats and opportunities
Competivive Threat 1 2 3 4 5 Opportunity-
Force - based
base
d
1. Potential Entry
How difficult is it for firms to enter your market? Easy 1 2 3 4 5 Difficult
How many options exist for discouraging new firms from Few 1 2 3 4 5 Many
entering your market?
2. Supplier Power
How much bargaining power do your suppliers have? Muc 1 2 3 4 5 Little
h
How many options exist for lessening supplier power? Few 1 2 3 4 5 Many
3. Buyer Power
How much bargaining power do your buyers have? Muc 1 2 3 4 5 Little
h
How many options exist for lessening buyer power? Few 1 2 3 4 5 Many
4. Potential Substitutes
How many alternatives do buyers have for getting the Muc 1 2 3 4 5 Few
benefits of your products or services in some other way? h
How many ways exist for improving your value to Few 1 2 3 4 5 Many
customers?
How many options exist for increasing customer loyalty? Few 1 2 3 4 5 Many
5. Rivalry
What level of intensity exists in the rivalry between you High 1 2 3 4 5 Low
and your direct competitors?
How strong are these direct competitors relative to your firm? Wea 1 2 3 4 5 Strong
k
How many options exist for taking on these competitors Few 1 2 3 4 5 Many
head-to- head?
How many options exist for selecting areas of the market that Few 1 2 3 4 5 Many
are not so competitive?
Source: Wysocki and Wirth (1999); Porter (1980).
Table 5. Competitive force checklist
Competitive Less Threatening/ 1 2 3 4 5 More Threatening/
Force Fewer More Opportunities
Opportunities
1. Changes in buyer demand (i.e., what buyers Little change 1 2 3 4 5 Much change
want and need)
Consider changes in tastes, lifestyle, List key changes List key changes
 family income, preferences for
uniqueness, etc.
2. Changes in long-term market growth rate Little change Much change
Consider changes in industry growth, List key changes 1 2 3 4 5 List key changes
population growth, product/service
attractiveness to customers, market
saturation, etc.
3. Product and marketing innovations Little change 1 2 3 4 5 Much change
Consider innovations in product/service List key changes List key changes
features, quality, packaging, promotion,
advertising, distribution, etc. (e.g., fresh
cut fruit and heart-healthy labeling)
4. Technological change and the speed with Little change 1 2 3 4 5 Much change
which it spreads
Consider changes in equipment, List key changes List key changes
production methods, biotechnology,
computers, information systems, and the
speed with which industry competitors or
customers adopt these changes.
5. Regulatory influences and government policy Little change 1 2 3 4 5 Much change
changes
Consider changes in List key changes List key changes
environmental regulations, food
safety regulations, etc.
6. Changes in uncertainty and business risk Little change 1 2 3 4 5 Much change
Consider changes in business liability, List key changes List key changes
volatility of markets, ability to forecast
effectively, etc.
7. Major changes in the economy Little change 1 2 3 4 5 Much change
Consider changes in the availability of List key changes List key changes
skilled laborers, investment, interest rates,
etc.
8. Increasing globalization of your industry Little change 1 2 3 4 5 Much change
Consider changes in imports, exports, List key changes List key changes
international firms, entering US
markets, etc.
Table 6. Self analysis checklist to assess strengths and weaknesses
Resource Weakness Strength
s * *
I. Marketing Resources
1. Customer satisfaction with products/services 1 2 3 4 5
2. Ability to gain customers versus competition 1 2 3 4 5
3. In-depth knowledge of product/service line 1 2 3 4 5
4. Product/service quality (function, image, place, possession, 1 2 3 4 5
ease of use)
5. Advertising and promotion activities 1 2 3 4 5
6. Product/service pricing 1 2 3 4 5
7. Facilities/methods used to sell to customers 1 2 3 4 5
II. Financial Resources
1. Strong and recurring operating profits 1 2 3 4 5
2. Strong and recurring cash flow 1 2 3 4 5
3. Strong and recurring return on investment 1 2 3 4 5
4. Strong and recurring return on equity 1 2 3 4 5
5. Efficient asset management 1 2 3 4 5
6. Proper balance of debt and equity 1 2 3 4 5
7. Ready access to outside/new funds 1 2 3 4 5
8. Well-managed customer credit 1 2 3 4 5
9. Well-managed supplier credit 1 2 3 4 5
III. Human Resources
1. Adequate number of people to do the work 1 2 3 4 5
2. Adequate quality of people to do the work 1 2 3 4 5
3. Personnel plans 1 2 3 4 5
4. Job design and description 1 2 3 4 5
5. Performance standards/evaluation procedures 1 2 3 4 5
6. Training programs 1 2 3 4 5
7. Good morale as evidenced by absenteeism, turnover, 1 2 3 4 5
tardiness, complaints, bickering, and employee growth and
development
8. Compensation system that promotes performance and 1 2 3 4 5
satisfaction
9. Equitable and competitive pay 1 2 3 4 5
10. Equitable and competitive fringe benefits 1 2 3 4 5
11. Appropriate use of terms 1 2 3 4 5
12. Work ethic of individuals and teams 1 2 3 4 5
IV. Operations/Production Resources
1. Quality of facilities to serve customers 1 2 3 4 5
2. Capacity of facilities to serve customers 1 2 3 4 5
3. Up-to-date, appropriate technology 1 2 3 4 5
4. Effective and efficient physical plant 1 2 3 4 5
5. Effective and efficient work flow 1 2 3 4 5
6. Effective and efficient inventory control 1 2 3 4 5
7. Effective and efficient purchasing practices 1 2 3 4 5
8. Effective and efficient production practices 1 2 3 4 5
V. Management/Leadership Resources
1. Effective management style 1 2 3 4 5
2. Timely decision making 1 2 3 4 5

Resource Weakness Strength

s * *
3. Effective delegation 1 2 3 4 5
4. Effective participation 1 2 3 4 5
5. Effective risk taking 1 2 3 4 5
6. Effective leadership 1 2 3 4 5
VI. Organizational Resources
1. Appropriate mix of resources (people, money, equipment) 1 2 3 4 5
available
2. Resources properly placed to do the job 1 2 3 4 5
3. Effective interdepartmental communications 1 2 3 4 5
4. Effective reporting relationships 1 2 3 4 5
5. Firm’s public image 1 2 3 4 5
6. Strong organizational culture (productivity, honesty, dispute 1 2 3 4 5
handling, tolerance of change)
VII. Information Resources
1. Appropriate financial/cost accounting systems 1 2 3 4 5
2. Planning system appropriate for internal analysis (assessing 1 2 3 4 5
strengths and weaknesses)
 3. Planning system appropriate for external analysis (assessing 1 2 3 4 5
opportunities and threats)
4. Control system that highlights problems and generates 1 2 3 4 5
corrective action
5. Information systems that use the best technology 1 2 3 4 5
(computers, etc.) available
6. Effective information for strategic decision making 1 2 3 4 5
7. Effective information for operation of decision making 1 2 3 4 5
Source: Wysocki and Wirth (1999).
* Rated on a scale of 1 to 5, with 1=greatest weakness and 5=greatest strength.

Table 7. Opportunities and threats analysis

Opportuniti Evidence
es
limited talented web designers in the local area. Being established in a local area, we put to use the skills and expertise of locals
knowledge of a particular field or industry can allow Focus on only one niche helps in building up the knowledge in that field extensively
the business to niche.
Promoting sustainable products with low Through the website, app and campaign we promote good quality with sustainance
environmental impact.
Threats Evidence
inexpensive DIY website builders can potentially Other competitors include low-cost goods which require less manpower
lure clients away.
more people learning web design that could become Web designing is an emerging field which is rapidly growing in all domains
our competitors.
other special services offered by competitors may There are factors like presence of discounts that could encourage customers to make
lure clients away from the business. purchase
Source: Wysocki and Wirth (1999).
Table 8. Strengths and weaknesses analysis
Strengths Rank Evidenc
e
running the business is fast and proficient at 5 Interior designing is a new trend that has evolved at a
creating web sites. great scale and everyone wishes to have a
professionally designed space
using many different design applications. 5 A compilation of various apps makes it very attractive to the
customers as they can choose among a lot of interfaces
the business having many connections with 5 For a small business, it is important to build network with
writers, photographers, coders, etc. personnel from related domains

Weaknesse Rank Evidenc

s e
complicated communication with clients. 1 With customers from a large geographic area, language acts as a
barrier
Source: Wysocki and Wirth (1999).

Table 9. Putting the SWOT analysis altogether

Where do your company’s strengths and opportunities reinforce each other, suggesting competitive advantage?
Where do your company’s weaknesses and threats reinforce each other, suggesting competitive disadvantage?
What are the key success factors that must be addressed to assure a successful future?
Are your company’s current vision, mission, goals, and objectives (this is another whole workshop) adequate? How much change is
needed?
Are your company’s current strategies adequate? How much change is needed?
Source: Wysocki and Wirth (1999).

Table 10. Answering the critical marketing strategy question

Based on your experience and beliefs, make a “grocery” list of all the reasons why customers buy from you.
1. Ease of use

2. Readily accessible

3. Pricing is affordable

4. Promoting “make in India”

5. Customizable furniture according to the needs of the buyer

6. Focus on sustainability

7. Supporting local artisans

8. Unlimited styles and designs

Source: Wysocki and Wirth (1999).
Table 11. Identifying possible target markets
Make a list of all the possible markets that exist for your product or service.
1. businesses looking for fancy interior for offices.

2. small businesses who want to make fancy showrooms.

3. people who desire to interior their new homes or existing homes.
4. Event designers that need interior designs or elegant furniture.

5. Architects looking to collaborate with designers.

6. Realtors who are trying to create a sample apartment or house.
Source: Wysocki and Wirth (1999).