Which of the following are qualities of "good" market segments? (Check all that apply.)

Question

Multiple select question.

The market segment is broad enough to be profitable for the firm.

Customers within a market segment have similar characteristics and responses to marketing mix variables.

Customers in different market segments have significant differences in characteristics and responses to marketing mix variables.

Less than 5% of all potential customers fit into each market segment.

Every customer in the product-market has a unique set of demographic characteristics.

The dimensions used to define the marketing segment help identify potential customers and effective marketing mix variables.

Answer 1

The qualities of "good" market segments typically include the following:

1. The market segment is broad enough to be profitable for the firm. - Good market segments should have enough potential customers to be financially viable.

2. Customers within a market segment have similar characteristics and responses to marketing mix variables. - It's important for customers in a segment to share similarities so that a targeted marketing approach can be effectively applied.

3. Customers in different market segments have significant differences in characteristics and responses to marketing mix variables. - This allows for differentiated marketing strategies that cater to the unique needs of each segment.

4. The dimensions used to define the marketing segment help identify potential customers and effective marketing mix variables. - Effective segmentation should clearly define the characteristics that lead to targeted marketing strategies.

The other options listed (less than 5% of customers fit into each segment and every customer having a unique set of demographic characteristics) do not align with the qualities of effective market segmentation. Therefore, they would not be selected as qualities of "good" market segments.