Question

Identify and explain the 5 characteristics of an attractive segment.

Answer 1

Answer:

1) easily identifiable

2) easily accessible

3) It must be a neglected market

4) It should have a large potential market

5) shows a potential growth

Explanation:

Easily identifiable customers

A potential business need to easily identify who their potential customers will be because customers play a major role to the success of the business.

If one can not see who their potential customers are going to be then it will not be a good idea to go for that kind of business; one should be able to put their potential customers into an identifiable segment.

Easily accessible customers

Your customers must be able to have easy access to your business without having to pay much to have access otherwise they won't even try to access it and your business will not live .

If there will be lack of accessibility then one should not go for that business.

An underserved or neglected market

One should go for a market that isn't popular or that is not paid attention to in order to establish ideas that will stand out, something that is going to be exceptionally yours .

A large potential market

In order to make profit from your business you need to have a large number of your potential customers.

Choosing a business that won't have much customers means you will not be able to make profit however an attractive segment is a larger number of potential customers .

The greater the number of potential customers the higher the potential of the business to succeed .

Growth potential

Another major segment is whether there is a possibility to advance the business .

If there is a chance for growth and development then that business is attractive.