Question

Describe the important factors marketers should analyze to evaluate market segments?

Answer 1

There are different important factors, that should be considered by the marketers when they evaluate market segments. The first important factor is income or purchasing power of the people in the market segment. It decides the sales potential of the market segment with respect to the products and services, produced by the company. So, marketers should know about it. The second important factor is the size of the market segment in terms of the number of potential customers, belonging to that segment. It will help marketers know the market potential of the segment and they could assess the business that can be drawn if this segment is focused upon.

The third important factor is the  cost to be incurred while reaching out to the specific market segment. Sometime,  the cost is high in terms of marketing campaigns, spreading awareness and other activities. Though, benefits drawn is less. So, it will help marketers decide whether to approach and target the segment or not. The fourth factor is presence of competition towards targeting the segment. If competition is high, then pricing has to be competitive and products need to be modified to meet the custom needs of the segment. It should be evaluated by the marketers before going to target the segment. It will affect their revenue forecasting, based on the segment.

Above are some of the important factors, to be studied towards evaluating the market segment.