Answer to Question #125441 in Marketing for Nimra

Question

A company has to be careful while dividing the market into various segments. Some segments appear to be fruitful in the short run and unprofitable in the long run. Mention various structural factors that affect long-run segment attractiveness.

Answer 1

Many factors influence the attractiveness of a market segment, including identifiable segment, reachable segment, response of the segment, and the size or profitability of the segment. One of the factors influencing long-run segment attractiveness is identifiability of the market segment. The market segment is identifiable when the organization understands the segment’s product requirement to enhance the production of the products. Another factor is the reachability of the segment. A long-run market segment must be reachable by the organization. The reachability of the market segment reduces the delivery costs and enhances the interaction between the market segment and the organization. Another structural consideration is the responsiveness of the market segment. A viable market segment must show a positive response to the company’s product offering. Another consideration is the size and profitability of the market segment. A long-run market segment should be large and have high profitability.