What are the characteristics of an attractive segment?

What are the characteristics of an attractive market segment?

An attractive market has the following characteristics:

  • It is sizeable (large) enough to be profitable given your operating cost. …
  • It is growing. …
  • It is not already swamped by competitors, or you have found a way to stand out in a crowd. …
  • Either it is accessible or you can find a way to reach it.

What are the characteristics of a good segment?

Regardless of your approach, a useful segmentation should include these six characteristics:

  • Identifiable. You should be able to identify customers in each segment and measure their characteristics, like demographics or usage behavior.
  • Substantial. …
  • Accessible. …
  • Stable. …
  • Differentiable. …
  • Actionable.

What makes a segment attractive?

They look at the potential profitability (is there an opportunity for a higher profit margin?) as well as the growth rate of the market segment. A segment becomes attractive when the product in question seems new to the customers and has plenty of room to expand.

What are segment characteristics?

Common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral.

What are the five segment attractiveness components?

By doing this evaluation using a set of five criteria, you can determine which segment is the most viable and worth pursuing for your company. You must ask yourself: Is the segment identifiable, reachable, substantial, responsive and profitable?

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What are the 7 market segmentation characteristics?

Market Segmentation: 7 Bases for Market Segmentation | Marketing Management

  • Geographic Segmentation: …
  • Demographic Segmentation: …
  • Psychographic Segmentation: …
  • Behavioristic Segmentation: …
  • Volume Segmentation: …
  • Product-space Segmentation: …
  • Benefit Segmentation:

What is a good segmentation?

Good market segmentation research provides a company with clear direction on which group or groups represent the best target—one that represents a disproportionally high share of potential profitability to the company and can easily be identified in the population or in customer databases.

What are three important characteristics of segments quizlet?

Successful market segmentation depends on four basic criteria: (1) a market segment must be substantial and have enough potential customers to be viable; (2) a market segment must be identifiable and measurable; (3) members of a market segment must be accessible to marketing efforts; and (4) a market segment must …

How do you know if a market is attractive?

Ways in which attractiveness may be measured include:

  1. Short-term profit.
  2. Long-term profit.
  3. Growth rate of market.
  4. Size of market after growth.
  5. As a step towards a more attractive market.
  6. Value of current products to market members.
  7. Cost of entry into market.
  8. Competition within market.

How do you use segmentation effectively?

13 ways to optimize your marketing results with behavioral segmentation

  1. Sell more (or upsell) with remarketing. …
  2. Serve segmented content based on income. …
  3. Target like a laser. …
  4. Create persona-specific campaigns. …
  5. Move budget to more conversion-ready audiences. …
  6. Find new customers. …
  7. Segment your video ad audiences.