Question

You have been asked to evaluate the attractiveness of several potential market segments. Waht criteria should you use to evaluate those segments? Why are these appropiate criteria?

Answer 1

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To evaluate the segments we can use the following criteria:-

1. Simplicity of attracting potential buyers to the segment.

2. Potential for better profit margins and increased sales.

3. Presence of similarity in the needs of the potential buyer in the segment.

4. Presence of diversity in the needs of the potential buyers in the segment.

5. Requirement of the huge amount of marketing or advertising of particular products in a particular segment.

These are the appropriate criteria when we need to evaluate a segment. This is due to the fact that the segment itself depends upon the needs of the customers as well as the requirements of the brands to create enough profit margins to justify segmenting in the first place.