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Characteristics of an attractive market

list of the characteristics of an attractive market
Night shot of  city buildings with neon lights
© ULAW Business School

We can summarise the characteristics of an attractive market as follows:

Attractiveness Factor Value
Market Size Large
Market Growth High
Market Profitability High
Price Sensitivity Low
Bargaining power of customers Low
Bargaining power of suppliers Low
Barriers to entry Low
Barriers to exit Low

Segments rarely display all of the above characteristics. If that were the case, marketers will have very easy decisions to make. The reality is that, for most segments, only some of these characteristics will be present which makes comparison of segments difficult and subjective.

© ULAW Business School
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