A business discovers that a particular market segment is too small and has insufficient purchasing power to justify the cost of developing a separate marketing mix. Which characteristic of an effective market segment does this segment FAIL to meet?

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Question

A business discovers that a particular market segment is too small and has insufficient purchasing power to justify the cost of developing a separate marketing mix. Which characteristic of an effective market segment does this segment FAIL to meet?

Accepted Answer

It must be substantial enough to be profitable to serve — For a segment to be worth targeting, it must be substantial — large and profitable enough to justify the investment of creating a separate marketing mix. The scenario describes a segment that is too small with too little spending power, which means it fails the 'substantial' criterion. The other options — measurable, accessible, and stable — are also characteristics of effective segments, but they are not the issue described here.

Answer

It must be measurable in terms of customer numbers

Answer

It must be stable over time so plans can be implemented

Answer

It must be substantial enough to be profitable to serve

Answer

It must be accessible through available distribution channels

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