What characteristics make a market segment attractive?

What are the characteristics of an attractive market segment?

An attractive market has the following characteristics:

  • It is sizeable (large) enough to be profitable given your operating cost. …
  • It is growing. …
  • It is not already swamped by competitors, or you have found a way to stand out in a crowd. …
  • Either it is accessible or you can find a way to reach it.

What is attractive market segment?

An attractive market segment provides a good fit between a company’s capabilities and product range and customers’ needs. Companies with a good fit succeed by offering superior value to customers in the segment. Small businesses may only find the optimum fit in a limited number of market segments.

What are the 7 market segmentation characteristics?

Market Segmentation: 7 Bases for Market Segmentation | Marketing Management

  • Geographic Segmentation: …
  • Demographic Segmentation: …
  • Psychographic Segmentation: …
  • Behavioristic Segmentation: …
  • Volume Segmentation: …
  • Product-space Segmentation: …
  • Benefit Segmentation:

How is market attractiveness determined?

The following key factors may also help determine attractiveness:

  1. Market size.
  2. Market growth.
  3. Pricing trends.
  4. Intensity of the competition.
  5. Overall risk in the industry.
  6. Opportunity to differentiate products and services.

What are segment characteristics?

Common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral.

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How do you identify market segments?

A good market segment should be: Identifiable (or differentiable). It should be possible to describe a segment according to descriptive characteristics (geographic, demographic and psychographic) or behavioral considerations (consumer responses to benefits, usage occasions or brands).

What are the 5 market segments?

Five ways to segment markets include demographic, psychographic, behavioral, geographic, and firmographic segmentation.

What does market attractiveness include?

A measure of the opportunities a market offers to an organisation, with an acknowledgment of various factors within the market, including growth rate and market size, as well as outside factors such as access to raw materials, competition and industry capacity.

What are the factors which influences the attractiveness of the industry?

Industry attractiveness is measured by external factors such as: market size, market growth rate, cyclicality, competitive structure, barriers to entry, industry profitability, technology, inflation, regulation, manpower, availability, social issues, environmental is sues, political issues, and legal issues.