GameDog is a small start-up company that that develops video games.
An independent marketing research firm – using a combination of demographic, behavioristic, and psychographic variables – has broken the overall video game market into three segments. Because GameDog lacks the financial resources to compete in all three segments, management must decide which segment it will pursue as its sole target market. Accordingly, GameDog’s top management has asked you to list and explain the criteria it should take into consideration to assess the attractiveness of each market segment. In doing so, explain the relevance of each criteria.
Please note that you are not being asked to speculate on or recommend a particular video game segment. Instead, you are being asked to describe the criteria for assessing market segments, in general, and choosing a target market.