Dana wants to open up a clothing store. The target market she selects will largely determine the type of product she sells. She has performed research and come up with three market segments that she thinks could be profitable: formal wear for special events, stylish but high-end clothes for consumers who use clothing as a status symbol, and casual clothing for those whose main concern is comfort. Dana has used sales estimates, competitive assessments, and cost estimates to determine the potential profitability of each segment. What is Dana's next step in the process?
A) Determine which segmentation variables to use
B) Develop market segment profiles
C) Develop sales forecasts
D) Select specific target markets
E) Evaluate relevant market segments

Question

Quizplus · Accepted Answer

Dana's next step should be to select specific target markets from the three potential segments she has identified. Once she has chosen her target market(s), she can then develop market segment profiles, determine which segmentation variables to use, evaluate relevant market segments, and develop sales forecasts specific to those markets. However, without first selecting specific target markets, it is difficult to proceed with the other steps.

Dana Wants to Open Up a Clothing Store