Market targeting is the second step of a market strategy. Once the market has been segmented, the ideal segment needs to be chosen or targeted. The first thing to do is to analyze the segment attractiveness. Some of the characteristics for an ideal segment include size of the segment, growth rate of the segment, brand loyalty of existing customers, level of competition, and most importantly, potential for profit. This information can be acquired through market research. The next step would be to do an internal analysis to determine compatibility levels with the segment.