Here is the answer, What is segmentation? Requirement of Effective Segment
What is segmentation?
Market means the group of buyers targeted by the firm for distributing the product. Segment means part of the total segment based on similar needs and wants. Market segmentation is a process of dividing the total customers of the target market into different units based on their needs, wants, preferences, etc. It is micro-marketing practice for producing and distributing separate marketing mix to separate groups of buyers.
Requirement of Effective Segment
Segments should be measurable in terms of customer, volume, demand, income, expenses, etc. Necessary qualifications should be done in segments for the effective decision of marketing mix. Easy to collect Sufficient data and information from the segments.
The segment should be reachable and serviceable in nature. There should be a high probability of making products available and accessible in the market. Similarly, there should be wholesalers, retailers, salesforce, media, and facilitators in the segment to distribute products.
The segment should be large enough for marketing purposes in terms of customer and profit potential. Possibility of recording cost of that segment and revenue generated from such segment. There should be a possibility of growth in the future.
In the case of two or more segments, each segment should be unique in nature. There should be a clear-cut basis for dividing total customers into customers. Customers of each segment should have unique needs, wants, desires, and preferences. Among each other compared to customers of another segment.
Other Important Links:
Process of Market Segmentation: CLICK HERE
Benefits of Market Segmentation: CLICK HERE
Target Market: CLICK HERE