Tuesday, January 19, 2010

Market segment

A market segment is a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups.



Syed Ahmad Hashmi said...

Market segmentation would be an integral part of customer driven marketing strategy and therefore whenever segmenting a market, marketers must fullfill the requirements of effective segmention so that plans are successful and blunder is not made.