Question

Frito-Lay Snack Foods is currently conducting market segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to

a) determine which segmentation variables to use.
b) develop market segment profiles.
c) identify the appropriate targeting strategy.
d) select specific target markets.
e) develop sales forecasts.

Answer 1

The next major step for Frito-Lay after conducting competitive assessments and cost estimates in market segmentation is to develop market segment profiles. These profiles help understand segment characteristics and needs crucial for effective marketing strategies.

Step-by-step explanation:

The question relates to the next major step Frito-Lay Snack Foods must take after completing competitive assessments and cost estimates during market segmentation studies. Given the context, the most logical next step would be developing market segment profiles. This step involves analyzing the segmented groups to understand better their characteristics, needs, and potential profitability, which is crucial before moving toward identifying targeting strategies or selecting specific target markets. Market segment profiles provide a comprehensive understanding of each segment, allowing for a more targeted and effective marketing plan.