Question #1 Once the strategy is determined, the company must look at the best method for segmenting the market. Vriens investigated segmentation, a method where consumers are separated into groups based on demographic and socioeconomic variables. They mention another method called the componential segmentation method where groups of consumers are linked by characteristics other than socioeconomic or demographic that they share. The method used depends solely on the needs and wants of the company. After the segmentation method is determined, the company must evaluate the attractiveness of the market they are entering. To evaluate market attractiveness, market demand, competitive intensity and market access must be assessed. To assess market demand, size, growth rate, and growth potential are all important factors when deciding if the market is attractive. Even if the market demand looks promising for the future, competitive intensity can quickly change the attractiveness. A more attractive market in terms of competitive intensity is one that has few competitors and substitutes for the product. Once both of these aspects are assessed, market access must be thoroughly examined. If the market cannot be penetrated, the market is useless to the company. There must be a demand for the product in the market for it to be useful. All three of these factors must be examined and deemed useful in order to find the most attractive market for the good or service being provided. Comment on effective segmentation! (15 marks)