Final answer:
Buyers within a market segment should be similar to one another and distinct from those in other segments, allowing for targeted marketing strategies. Product differentiation and advertising play a critical role in shaping customer preferences within each segment.
Step-by-step explanation:
The question asks about characteristics of potential buyers within a market segment. In marketing, successful segmentation requires that buyers within the same segment should be similar to each other but different from those in other segments. This is due to the need for a targeted marketing approach where advertising is tailored to the specific needs and preferences of that segment. Additionally, market participants, both sellers and buyers, should be well-informed about products and able to freely enter and exit the market.
Product differentiation is key in tailoring to specific market segments, and it can occur through tangible or intangible aspects. A brand can differentiate itself with promises like satisfaction guarantees, a reputation for quality, or value-added services. Also, advertising greatly influences customer preferences and brand loyalty. While some strategies for attracting customers might involve competing on price or providing additional services, the focus on distinct market segments emphasizes the importance of understanding and catering to the unique characteristics of that group.