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Requirements of segmentation.
Before an organisation can target a specific segment accurately it must ask itself a number of questions. It is important to evaluate the effectiveness of a targeting strategy and the viability of the segment, if this is not done then money will be wasted.
The market which is segmented must meet the following criteria:
Measurability of segment: Can you measure the size and growth of the segment. Is the segment growing? In the UK the DVD market is growing at an extremely fast pace. From January 2002 – June 2002 900,000 DVD’s were sold. The fast growth rate is attracting many players within the market.
Accessibility of segment: Is it easy for you to target and reach your segment? Can they be reached with basic communication tools such as radio and TV advertising? If you cannot target your segment effectively with marketing communication then it is not viable.
Suitability of segment: Is there enough spending power within the segment for the company to sustain itself.? Will spending within the DVD marketing continue?
Actionability of segment: Does the organisation have enough resources to reach their segments?. It is no point in targeting segments you do not have the resources to cater for. If you were a car manufacturer the organisation would not concentrate on the affluent and price sensitive market if they did not have the resources to do so.Studying Management? Visit www.learnmanagement2.com
Further reading:
Case studies from www.thetimes100.co.uk
Principles of Marketing by Philip Kotler
Principles of Marketing by Frances Brassington
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