Effective Market Segmentation

When a market is effectively segmented, less resources are put in place hence culminating into profitability to the firms.   For Market Segmentation to be effective, the following conditions are necessary.

The market segment must be;

  1. Measurable

The size and buying power of the segment should be measurable. This will enable the marketer to assess the amount of products to produce and how to price them.

measurable

2. Substantial

It should be large enough to generate sales volume that ensures sustainability. A small segment can also be profitable if it has a substantial buying power.

substantial 2

3. Accessible

Marketing managers should be able to communicate effectively with different segments using various advertising media.

4. Differential

The segment should be distinguishable and should respond differently to different marketing mix element and products.

diffrential

  1. Actionable

The marketing manager should be able to formulate attractive programs to attract and serve the segments. A market should be actionable if it is large in size or it is profitable.

actionable.jpg

Benefits of Market Segmentation

  • Marketers are able to assess effectively their competitive strengths and weaknesses.
  • Marketers can avoid fierce competition by putting resources in areas not penetrated by their rivals.
  • The target market identification can help marketer design products that really match the market needs and wants.

quality

  • Marketers can formulate promotion messages geared to specific target market.
  • Helps in determination of the most effective channel of distribution that can ensure a specific target market is served effectively.
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Author: Sammy

I am an ambitious and energetic Sales and Marketing Executive with excellent marketing and business development skills. Also competent in brand launch, product advertising, planning, promotions, competitor analysis, negotiating and key accounts management.

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