You are evaluating your company's segmentation approach and discover an important missing condition. They have measured their target market and discovered it is reachable, stable, cost-effective, and measurable. Which condition is missing?

Question

Business

Riya

25 September, 00:26

You are evaluating your company's segmentation approach and discover an important missing condition. They have measured their target market and discovered it is reachable, stable, cost-effective, and measurable. Which condition is missing?

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Answers (2)

Know the Answer?

Jasmine Welch · Answer 1

Profitability

Explanation:

Market segmentation is defined as the science of dividing market into segments whose members share common characteristics. A firm enjoys economies of scale when they are able to tailor marketing techniques towards specific segments and they are able to meet the needs of their customers.

A market segment should be worth pursuing when it is large enough and the amount of disposable income which the target market is willing to spend in purchasing the firms goods and services should be able to earn profits for the firm.

Matthew Palmer · Answer 2

Profitability

Explanation:

It is not enough that our target market is reachable, stable, cost-effective, and measurable. We also need to measure how profitable the market is. We know that our major aim of doing business is to make profit, therefore the profitability of the market must be measured as well.