BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -size does not always correlate with future growth potential. top-down and bottom-up perspectives are available to assess the attractiveness of each segment in terms of its potential for targeting, but only top-down perspective should be considered.

Detailed explanation-2: -Segments become more homogeneous as they increase in size. A set of segments may be very clear from a statistical perspective, but they need to be useful from a managerial point of view. Some companies that tried mass customization have scaled back their attempts because it is not cost-effective.

Detailed explanation-3: -– A segment is less attractive if it already contains many strong and aggressive competitors. products may limit prices and the profits that can be earned in a segment. – The relative power of buyers also affects segment attractiveness.

Detailed explanation-4: -Smaller companies may lack the skills and resources needed to serve larger segments. A segment is more attractive if it is easy for new competitors to enter the market. A market segment with powerful suppliers controlling the prices is more attractive than a segment with less powerful suppliers.

Detailed explanation-5: -The first stage of the Consumer Decision Making Process, need recognition takes place when a consumer identifies an unmet need.