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

Question

Multiple select question.

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

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

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

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

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.

Answer 1

The qualities of "good" market segments include:

1. The dimensions used to define the marketing segment help identify potential customers and effective marketing mix variables.
2. Customers in different market segments have significant differences in characteristics and responses to marketing mix variables.
3. The market segment is broad enough to be profitable for the firm.
4. Customers within a market segment have similar characteristics and responses to marketing mix variables.

The other options do not typically align with the qualities of good market segments:

• Less than 5% of all potential customers fit into each market segment. (This statement is not a quality of good market segments; a segment can vary significantly in size, and some may have a larger share.)
• Every customer in the product-market has a unique set of demographic characteristics. (While customers are unique, effective segments often group customers with similar characteristics together to streamline targeting and marketing efforts.)