Factors for Evaluating Segments
There are several factors in a business that are affected by the evaluation of the segments in marketing, and all these factors are described below:
Market Potential: The marketing potential can be determined by the number of potential buyers in the market and their income, and their interest in buying the type of product that the business is offering. The total market is formed by the buyer interested in the product multiplied by the purchases they have made from the market. It is very important for the buyer to need the product and have the ability or the budget to purchase it. We can understand the market potential by evaluating the number of people in each market.
Sales Potential: Sales potential is that the company focuses on the potential market and the share of the market that the company wants to achieve. The companyâ€™s share can be estimated by the performance of the company in other markets. The share can also be built up by calculating the share that the average customer wants to buy and then multiply that by the total number of customers.
Competition in the Market and Sales Potential of Segmentation Evaluation
The competition situation is an important part of any marketing and sales setup; therefore, it is also important in evaluating segments in competitive conditions. Healthy and ethical practices in the competition are good for any marketing competition. If the sales of the suppliers in the market are below the marketâ€™s potential, then the sales can be achieved, which will also not affect the competitors in any form.
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