When evaluating market segments, assessment of competitors is important because
A) it is difficult to segment a market when it has multiple competitors.
B) an absence of competitors usually creates difficulties in accurately measuring segment sales potential.
C) sales estimates may cause a segment to appear to be lucrative, but there may be several competitors that together have a large share of that segment.
D) a competitive analysis may lead to confusion as to who are the key competitors.
E) competition is generally not a major problem as long as a marketer is aware of it.

Question

Quizplus · Accepted Answer

Sales estimates may make a segment seem attractive, but competition may make it less lucrative. Understanding the level of competition in a market segment is essential for accurate assessment of sales potential and determining if a segment is worth pursuing.

When Evaluating Market Segments, Assessment of Competitors Is Important Because