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GameDog is a small start-up company that that develops video games. An independent marketing research firm – using a combination of demographic and psychographic variables – has broken the overall video game market into three major segments: Segment A (multiple player games), Segment B (single player games), and Segment C (educational games). Because GameDog lacks the financial resources to compete in all three segments, management must decide which of the three it will pursue as its target market.
Accordingly, GameDog’s top management has asked you to explain which criteria it should take into consideration to assess the attractivenessof various market segments, in general, so that it can decide which segment to pursue. In addition to explaining which criteria should be used to evaluate the attractiveness of different market segments, also discuss the relevance of each criteria. Please note that you are not being asked to evaluate and recommend either of the three segments, and that you are not being asked about the demographic and psychographic variables used to define these segments. Instead, you are to explain how to assess the attractiveness of various market segments,in general. In other words, you are to give advice that can be applied to any situation in which a firm is deciding which segment to target.
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