11. Answer the question below. Use the rubric in the materials for help if needed. XYZ Advertising agency completed a matrix of factors for their client: Bart's Books and Electronics. Review the matrix below. Identify which segment XYZ Advertising should target. Explain your reasoning and use details to support your answer. Attractiveness Responsiveness Competencies Accessibility Advertising Cost Competition External Factors Criteria Segment A 65,000 individuals $95,000 projected profit low yes yes $50,000 little competition some influence from economic downturns 85,000 individuals $105,000 projected profit medium yes yes Segment B $75,000 established competition some influence from economic downturns

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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**Question 11: Analysis of Advertising Segments**

XYZ Advertising agency conducted an analysis using a matrix of factors to assist their client, Bart's Books and Electronics. Review the matrix presented and determine which segment XYZ Advertising should focus on targeting. Provide your reasoning and incorporate specific details to support your conclusion.

**Matrix Details:**

| **Criteria**             | **Segment A**                                | **Segment B**                                |
|--------------------------|----------------------------------------------|----------------------------------------------|
| **Attractiveness**       | 65,000 individuals                           | 85,000 individuals                           |
|                          | $95,000 projected profit                     | $105,000 projected profit                    |
| **Responsiveness**       | low                                          | medium                                       |
| **Competencies**         | yes                                          | yes                                          |
| **Accessibility**        | yes                                          | yes                                          |
| **Advertising Cost**     | $50,000                                      | $75,000                                      |
| **Competition**          | little competition                           | established competition                      |
| **External Factors**     | some influence from economic downturns      | some influence from economic downturns       |

### Considerations:
- **Segment A** has lower projected profit and advertising cost, with little competition but low responsiveness.
- **Segment B** offers a higher projected profit and attractiveness, with medium responsiveness, though it has established competition and higher costs.

Decide which segment aligns best with the strategic priorities of Bart's Books and Electronics, considering both financial outcomes and market conditions.
Transcribed Image Text:**Question 11: Analysis of Advertising Segments** XYZ Advertising agency conducted an analysis using a matrix of factors to assist their client, Bart's Books and Electronics. Review the matrix presented and determine which segment XYZ Advertising should focus on targeting. Provide your reasoning and incorporate specific details to support your conclusion. **Matrix Details:** | **Criteria** | **Segment A** | **Segment B** | |--------------------------|----------------------------------------------|----------------------------------------------| | **Attractiveness** | 65,000 individuals | 85,000 individuals | | | $95,000 projected profit | $105,000 projected profit | | **Responsiveness** | low | medium | | **Competencies** | yes | yes | | **Accessibility** | yes | yes | | **Advertising Cost** | $50,000 | $75,000 | | **Competition** | little competition | established competition | | **External Factors** | some influence from economic downturns | some influence from economic downturns | ### Considerations: - **Segment A** has lower projected profit and advertising cost, with little competition but low responsiveness. - **Segment B** offers a higher projected profit and attractiveness, with medium responsiveness, though it has established competition and higher costs. Decide which segment aligns best with the strategic priorities of Bart's Books and Electronics, considering both financial outcomes and market conditions.
Expert Solution
Step 1: Introduction

The technique of defining a market into smaller groups of people with similar characteristics is known as target market segmentation. This enables organizations to adjust their marketing messages and products to each segment's individual needs.


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