There are many ways to segment a market, but not all segmentation is effective. To be useful, market segments must be:
1) Measurable: The size purchasing power and profiles of the segments can be measured; however certain segmentation variables are difficult to measure.
2) Accessible: The market segments can be effectively reached and served.
3) Actionable: Effective programs can be designed for attracting and serving the segments.
4) Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
5) Substantial: The market segments are large or profitable enough to serve. A segment should be the largest possible homogenous group worth pursuing with a tailored marketing program.
Reference: Principles of marketing 12th edition by Kotler & Armstrong.
Saturday, January 2, 2010
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1 comments:
That's a very useful addition since segmentation plays a big role in creation of a customer driven marketing strategy that determines whether a Product offered to the market will succeed in Providing customer satisfaction and Value proposition.Therefore, segmentation needs to be effective so that complications are minimum in strategy making.
Good work. Keep it up.
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