Which of the following is a basic requirement for effective market segmentation?
A)The firm must avoid focusing on consumer-dependent variable, such as discretionary income, while conducting market segmentation.
B)The market segment must present measurable purchasing power and size.
C)The company must expand beyond its marketing capabilities to capture those market segments that have reached the maturity stage in the product life cycle.
D)The company must target a large number of small market segments so that they can develop effective strategies to appeal to them.

Question

Quizplus · Accepted Answer

A basic requirement for effective market segmentation is that the market segment must present measurable purchasing power and size. This means that the segment should be large enough to be profitable and the customers in the segment should have the ability and willingness to buy the product or service being offered. Focusing on consumer-dependent variables such as discretionary income may not always be effective in identifying profitable market segments. Expanding beyond marketing capabilities or targeting a large number of small market segments does not necessarily guarantee effective segmentation.

Which of the Following Is a Basic Requirement for Effective