DECA Retail Merchandising Practice Exam

What does the term "reachable" imply in market segmentation?

1. The retailer can easily identify the segment

2. The retailer can effectively reach the customers in the segment with promotions

3. The customers are always available to purchase

4. The retailer has competitive prices

The correct answer is: The retailer can effectively reach the customers in the segment with promotions

In the context of market segmentation, the term "reachable" specifically refers to the retailer's ability to effectively reach the customers within a particular segment with their marketing promotions and communications. This implies that the retailer has strategies and channels in place—such as advertising, direct marketing, social media, and sales promotions—that allow them to connect with and influence the identified market segment. This accessibility is crucial because even if a segment is well-defined and identifiable, it doesn't serve a purpose if the retailer cannot engage those customers through effective promotions. Therefore, being "reachable" emphasizes the importance of using appropriate tactics and methods to ensure that the promotional efforts are successful in targeting and resonating with consumers in that specific segment. Other options do not encapsulate this definition accurately. For instance, identifying a segment does not guarantee that a retailer can effectively communicate or promote to it. While having competitive prices is important for attracting customers, it does not directly relate to how reachable the segment is. Lastly, customer availability for purchase does not equate to the effectiveness of the retailer’s promotional strategies in engaging that customer segment.