Market Segmentation

Market segmentation is a very basic, core marketing activity. It is defined as an attempt to fit the product to the market.


Ensure meaningful market segmentation as follows:




  • The specific segment must be large enough

  • It must be possible to measure and compare segments with regard to marketing costs, sales figures and potential profit

  • Classify the total market into homogeneous groups based on attributes, needs demands or preferences

  • The market segment must be accessible



Evaluate of market segment as a potential target market




  • The resources and skills of the enterprise

  • Segment size and growth potential

  • Attractiveness (including profitability)



Pros & Cons of market segmentation




  • Satisfied customers

  • Identification of excellent marketing opportunities

  • Gives guidelines (good filter!)

  • Allows focussed, on brand communications


x Risky - all the eggs in one basket
x Very expensive


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