Market Segmentation Criteria

Segmentation strategy uses the following four criteria :

(a) Identity : The marketing manager interested in segmentation must have, first of all, some means of identifying members of the segment—some basis for classifying an individual as being or not being a member of the segment. That is, there must be some evident want or desire, or atleast some common characteristic or behaviour pattern.

(b) Accessibility : Once a segment has been identified, the next question is : Can we communicate with them ? The organisation must be able to focus its marketing efforts on the chosen segment.

(c) Responsiveness : If the segment can be identified and communicated with then the next criterion to consider is whether or not the segment will respond to marketing effort. For example, certain product features, a lower price or more service, may more precisely satisfy the needs of a given segment than would a general marketing effort.

(d) Significance : Suppose that a segment meets the first three criteria i.e. it can be identified, reached  with marketing effort, and would respond to that effort. The last and the most crucial question from marketing management’s point of view is : Is it really significant ? The segment must possess sufficient  buying power (willingness and ability to buy) to make a worthwhile contribution to the marketing organisation’s objectives.

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