Note: Additional resources may be found on the accompanying student and instructor websites at
PURPOSE AND PERSPECTIVE
In this chapter, we define and explore the concepts of markets and market segmentation. First, we discuss
the major requirements of a market. Then, we examine the steps in the target market selection process,
including identifying the appropriate targeting strategy, determining which variables to use for
segmenting consumer and business markets, developing market segment profiles, evaluating relevant
market segments, and selecting target markets. We conclude with a discussion of the various methods for
developing sales forecasts.