Criteria Necessary For A Market Segment: Profit Potential

This is my third post on the criteria necessary for a market segment

A Market Segment Must Be Potential Customers.

The market segment that you select to target must contain the people that you believe are most likely to buy your products or services.

A Market Segment Must Be Large Enough To Turn A Profit

It must also be large enough, that if only a small percentage of it’s members purchase, you will still make a profit. That means that you will make enough money to pay for the marketing campaign and still make a large enough profit to warrant the time and other resources invested.

Criteria necessary for a market segment - profitability

Your Price Must Be Profitable

This requires that you consider how you price your products and services. Your prices must produce a profit if you get a specific number of projected sales. Don’t forget as you set your price to include the the cost of your marketing campaign.

If you want to learn more about pricing, click on the price category in the right sidebar and you’ll access several of my posts on pricing.

Assuring that the market segment is large enough to be profitable is the last of the criteria necessary for a market segment. Measuring and identifying the people in a market segment provides the third of five criteria necessary for a market segment.

But I do have one more thing to tell you about criteria necessary for a market segment. I’ll post that information tomorrow.

You can get a free report on my Market Segmentation Process by completing the form below.

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