Asked by Angela Trevino on Jul 26, 2024
Verified
A marketing manager should develop segments for a market that meet five principal criteria. List these important factors in forming market segments.
Market Segments
The process of dividing a target market into smaller, more defined categories of consumers who share similar characteristics and needs.
Principal Criteria
The main or most important standards used to evaluate options or make decisions.
- Acquire an understanding of the factors that guide the selection of target markets.
Verified Answer
JK
Jairaj Khurana
Jul 30, 2024
Final Answer :
The five criteria are: (1) simplicity and cost-effectiveness of assigning potential buyers to segments, (2) potential for increased profit and ROI, (3) similarity of needs of potential buyers within a segment, (4) difference of needs of buyers among segments, and (5) potential of a marketing action to reach a segment.
Learning Objectives
- Acquire an understanding of the factors that guide the selection of target markets.