When market segments are being evaluated, 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 the key competitors are.
E)competition is generally not a major problem as long as a marketer is aware of it.

Question

Quizplus · Accepted Answer

Assessing competitors is important when evaluating market segments because even if sales estimates make a segment appear lucrative, there may be multiple competitors with a large share of that segment, making it difficult for a new entrant to gain traction. Understanding the competitive landscape is critical in determining the viability of a market segment.

When Market Segments Are Being Evaluated, Assessment of Competitors Is