Question

What defines whether a segment is accessible or not? Why accessibility is so crucial for targeting even when we know the fact that a segment cannot be accessed does not mean that it does not exist.

Why is there no need for a product if there is no competition?  Discuss with suitable marketing examples.

Why do firms need to target multiple segments? How it will affect the competencies of the firm.

What are the problems of extending the brand to new segments? Discuss at least two reasons to support your viewpoint.

Answer 1

Accessibility of a segment

The following are the factors that define whether a segment is accessible or not.

• Firstly we have to check whether a particular market segment is identifiable or not.
• Then we must ensure that the market segment will receive the product or service.
• We should check whether the customers in a particular segment is responding to the company or not.
• The profitability of a segment is also an important criterion that determines whether a segment is profitable or not.

Importance of accessibility

The following are the reasons why accessibility is crucial for targetting.

• Accessibility of a market segment is important to know whether we are able to communicate properly with the customers in a target market or not.
• Accessibility is very crucial for making the business a profitable one.
• Accessibility is very crucial in responding to customers in the segment.

If there is no competition

Having competition is a good thing that businesses can have. The competition a good thing in the sense that potential customers of a competitor can also be attracted to a particular company. Competiton is very much helpful in reducing the effort of a company in creating awareness about a product or service. When Henry Ford started mass automobile production in the United States he struggled a lot in reaching customers due to the absence of a competitor.

Need to target multiple segments and the effect on the competency of a firm

The following are the needs for targetting multiple segments.

• The company could produce more products and thereby gain the benefit of economies of scale.
• It helps a company to expand its customer base.
• It helps companies in generating more revenue.

Problems of extending a brand to new segments

The following are the problems of extending the brand to new segments.

• If a company enters into an unfamiliar segment there is a probability that the business may fail due to stiff competition and lack of customer awareness.
• Entering into a new segment may lose the faith of customers in the existing segment and it may damage the company image.

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