Thursday, July 23, 2015

Four Requirements for market segmentation

Market segmentation is meaningful when the customer needs and characteristics are heterogeneous. The Four requirements for effective market segmentation are as follows:

1 (Measurable
Customer size, needs, purchasing power and their characteristic should be measurable for effective market segmentation otherwise segmentation   job is impossible.

2) Actionable
The firm should be able to formulate and implement marketing program to serve the segment.

3) Divisible
The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. In other words there must be some basic for dividing customer into meaningful homogeneous group.

4) Accessible
Segmentation no value if firm cannot find middleman to distribute the product and services in target market or particular segment. So we can say accessibility is the most requirements for effective market segmentation.


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