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Thursday, 20 September 2018

Requirement/Conditions for Effective Market Segmentation

To be meaningful and useful, market segments must exhibit the following characteristics h i s m a a.

 1. Homogeneous within: the people within the market segment must possess some common behavioristic, geographic, psychographic or demographic characteristics which bind them together.

2. Identification: it should be relatively easy and possible to identify some markets and their characteristics within a large heterogenous market. Position of internal homogeneity is an attribute for identification.

3. Substantiality: to be worthwhile, a market to be segmented should be substantial or large enough to be serviced . It should be profitable to be able to induce the deployment of marketing mix so it's by the company.

4. Measurability: it should be possible to know the size of the market, how many people are there, what is their purchasing power and how consistent they are in attitudes. This is obtainable through market research.

5. Accessibility: every market that will be segmented but be easy to reach. It must be easy to direct company's marketing effort in terms of communication and distribution.

 6. Appropriateness: it is important that the company resource and needs are related to the sub market to be segmented. If the company's resource can not be appropriately matched with the needs of the market, there is no point trying to segment the market. Products that promotes immorality may not be appropriate to any religious organisation.