What are the criteria used to select target markets?

There are two different kinds of criteria in the market segmentation process: those used to: (1) divide the market into segments and (2) actually pick the target segments. Five criteria can be used to pick the target segments. They are (1) market size, (2) expected growth, (3) competitive position, (4) cost of reaching the segment, and (5) compatibility with the organization's objectives and resources.