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Requirements for effective segmentation

Presentation 4/5
Piyush Gupta

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Requirements for effective segmentation

  1. 1. What are the Requirements for Effective Segmentation? Identifying Market Segment and Targets
  2. 2. 5Requirements of Effective Segmentation
  3. 3. Requirement 1 Measurability Based on Size, Purchasing Power & Characteristics of the Segment
  4. 4. Things to ponder over Size of the existing sales in the segment Knowing how product sales are growing in the chosen segment
  5. 5. Requirement 2 Substantial Knowing whether the Segment is Larger and Profitable enough to Serve the Customers “Size and Suitability is Important. Here Companies makes sure whether the segment is likely to buy the product and have the spending power to buy the product or not”
  6. 6. Requirement 3 Accessibility Accessibility is about communicating with your customers and being able to get things to them. Communication is usually through the internet, TV, radio
  7. 7. differentiability The chosen segments should be clearly defined to avoid doubt about which part of the market, the firm's marketing activities are aimed at. Requirement 4
  8. 8. Requirement 5 Actionable Even if all of the criteria listed above are satisfied a segment is unsuitable unless the business has the resources to cater for the needs of the segment. “Proper Action must be Formulated for serving the Segment”