Question

3. Using the framework outlined in the textbook, evaluate the segment attractiveness. Explain how a "hiking person" meets each of the five criteria of segment attractiveness. If you determine there are no attractive segments for Ecoflow Product R600, explain what the company should do about it.

the five attractiveness segments are identifiable, substantial, reachable, responsive, profitable.

Answer 1

- Once the company finds various segmentations of the market on the basis of how much return they can probably earn by investing in the segment. The higher they can earn out of the market on their investment, the higher would be the attractiveness of that particular segment of the market. These would basically be the customer segments like the categorization on the basis of their lifestyle, age, location, sex and the like. The five segment of attractiveness would be as follows:

a) Identifiable:

Your firm should figure out who is inside your market to have the option to structure items or administrations to address their issues. It is similarly imperative to guarantee that the fragments are unmistakable from each other as far as requirements on the grounds that an excessive amount of cover between sections implies that particular promoting methodologies aren't important to address portion individuals' issues.

b) Reachable:

The best item or administration can't have any effect if that market isn't effectively open or reached through enticing correspondences and item dissemination. Purchasers in the fragment must have the option to get your advertising messages to know the item or administration exists, comprehend what it can accomplish for them, and perceive how to get it.

c) Responsible:

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to your firm’s offering. Even if a segment meets all the other criteria for a successful segment, you should not pursue it if the market probably won’t be responsive to your product due to the competitiveness in the market.

d) Substantial and Profitable:

When the firm has distinguished its potential objective markets, it needs to gauge their size and development potential. In the event that a market is excessively little or its purchasing power is immaterial, it won't produce adequate benefits or have the option to help promoting blend exercises. You should concentrate your evaluation on the expected productivity of each fragment, both current and future. Key elements to remember in this investigation incorporate market development (current size and expected development rate), showcase intensity (number of contenders, section hindrances, item substitutes), and market get to. Some direct estimation can help show the productivity of a section. Section gainfulness = (Segment size x Segment selection rate x Purchase conduct x Profit edge rate) – Fixed expenses.

- If the company finds that the Eco flow product which is a portable PowerStation has no attractiveness, then they should study the following five segments of attractiveness:

a) Identifiable:

Your firm should figure out who is inside your market to have the option to structure items or administrations to address their issues. It is similarly imperative to guarantee that the fragments are unmistakable from each other as far as requirements on the grounds that an excessive amount of cover between sections implies that particular promoting methodologies aren't important to address portion individuals' issues.

b) Reachable:

The best item or administration can't have any effect if that market isn't effectively open or reached through enticing correspondences and item dissemination. Purchasers in the fragment must have the option to get your advertising messages to know the item or administration exists, comprehend what it can accomplish for them, and perceive how to get it.

c) Responsible:

For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to your firm’s offering. Even if a segment meets all the other criteria for a successful segment, you should not pursue it if the market probably won’t be responsive to your product due to the competitiveness in the market.

d) Substantial and Profitable:

When the firm has distinguished its potential objective markets, it needs to gauge their size and development potential. In the event that a market is excessively little or its purchasing power is immaterial, it won't produce adequate benefits or have the option to help promoting blend exercises. You should concentrate your evaluation on the expected productivity of each fragment, both current and future. Key elements to remember in this investigation incorporate market development (current size and expected development rate), showcase intensity (number of contenders, section hindrances, item substitutes), and market get to. Some direct estimation can help show the productivity of a section. Section gainfulness = (Segment size x Segment selection rate x Purchase conduct x Profit edge rate) – Fixed expenses.

This would help them rework the whole business or market segmentation for the product and understand what actually went wrong with their placement or positioning of the product. This would help them do the necessary changes and make the segmentation of market and customers.