Research on target markets decision for product innovation

Segmentation of industrial markets is typically based on observable characteristics of firms such as their location and size. Indeed, the target market decision research for new product development primarily relies on experience. To improve the effectiveness and power of existing approaches to industrial market segmentation, The target market decision model for product innovation is presented and the market segment approach for mechanical product based on buyer firms' characteristic, suppliers firms' product characteristic and core technology characteristic is also proposed. And the mathematic model for target market decision is built. This technology makes the target market decision process operable. To test the effectiveness, a practical example of edge position automatic guiding control system is provided to illustrate the market segment, evaluation, and decision process.