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Essentials of Marketing 7th Edition

Essentials of Marketing (7th Edition)

Book Edition7th Edition
Author(s)Hair, Lamb
ISBN9780538478342
PublisherCengage Learning
SubjectBusiness
Chapter 8, End Of Chapter, REVIEW AND APPLICATIONS, Exercise 1.1
Page 283

Describe the characteristics of markets and market segments.

 

A market is composed of individuals or organizations with the ability and willingness to make purchases to fulfill their needs or wants. A market segment is a group of individuals or organizations with similar product needs as a result of one or more common characteristics.

 

Mercedes-Benz is thinking about advertising its cars to college students. Do you think that college students are a viable potential market for Mercedes? Why or why not?

Explanation

Car brand M is one of the leading brands across the world. It is quite expensive and thus, targets high income consumers. College students while studying do not have that much income as they do not earn themselves. They get a small amount of money for their daily expenses either from their family or a part time job. Hence, they cannot afford to buy such an expensive car. 

Verified Answer

College students might not be the viable potential market for car brand M because college students' disposable income is quite low.

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