effective market segmentation criteria

Criteria for effective segmentation:

•  Measurable: some form of data should be available to measure the size of the market segment. Measurements are very important to be able to evaluate the overall attractiveness of each segment. Hence, the segment should be such that all of its measurable characteristics like market size, purchasing power, demand can be found out.

• ·Accessible: the segment should be such that the product can reach the segment via distribution channels and the promotions can reach them via proper media. In other words, the market segment should be reachable, particularly in terms of distribution and communication. Hence, this criterion refers to the ease of effectively and economically reaching chosen segments with marketing efforts.

•  Substantial: the market segment should be large enough, in terms of sales and profitability to warrant the firms’ attention.in other words, the segment should be size able enough to make the firm profitable. Each firm will have minimum requirements for the financial return from their investment in the market, so it is necessary to only consider segments that are substantial enough to be of interest.

•   Responsive: each market segment should respond better to a distinct marketing mix.

• Actionable: the segments should be such that effective marketing programs can be implemented.

• Differential. All the segments should be different than each other and should not overlap. If they do they should come under one segment