Answer to a classmate’s Post :

Classmate’s Post:

1. An entrepreneur must take into account segmentation variables, which are factors that separate one kind of market behavior from another, in order to split the whole market into relevant categories. (Longenecker et al., 2022) Benefit variables and demographic variables are two big categories of segmentation variables that describe the main aspects of a market. To put marketing strategy and sales forecasts into practice, both kinds of variables are required. Benefit variables are used to pinpoint market categories based on the advantages buyers want, hence emphasizing their unmet requirements. Demographic variables emphasize particular traits that characterize consumers, as well as their purchasing power, consumption patterns, and other aspects. Age, marital status, gender, occupation, and income are a few of these traits. (Longenecker et al., 2022)  

2. I don’t believe a small firm and a large business would use the same variables. “Small businesses often lack the resources that these strategies tend to require.” (Longenecker et al., 2022) A firm is using a multisegment strategy if it finds that two or more market segments have the potential to be lucrative and then creates a distinct marketing mix for each segment. A firm is better able to customize marketing mixes for different segments when it has a picture of the market that recognizes diverse segments with distinct preferences. Another variable that is useful to a firm is a single-segment strategy. (Longenecker et al., 2022) A company is pursuing a single-segment strategy when it acknowledges the existence of several separate market segments but decides to focus on only the most lucrative one. This strategy helps a small business to specialize and make greater use of its limited resources, making it arguably the best one to employ during first market attempts. Once the company has a solid reputation, expanding into other areas will be simpler. (Longenecker et al., 2022) 

Resource

Longenecker, J. G., Petty, J. W., Palich, L. E., & Hoy, F. (2022). Small Business Management: Launching and Growing Entrepreneurial Ventures. Cengage.