Conditions for effective market segmentation with examples. The 5 Criteria for segmentation In marketing
Dr Catherine Ngahu talks about the 5 requirements for effective market segmentation or the criteria you need to observe to ensure effective market segments. In today’s diverse world, observing the requirements for effective market segmentation is important for winning the market and remaining competitive in businesses of all sizes. Successful and profitable marketing depends on being able to understand and segment your market effectively.
This video discusses the five important requirements or conditions for creating effective market segments. These include accessibility in market segmentation, stability in market segmentation, measurability segmentation criteria, substantiality and actionability. This information is useful for business people, marketers, those in sales, as well as students of business and consumer behaviour.
Adhering to the conditions for effective market segmentation helps you to attract and keep customers. You will have a competitive edge in the market, and ultimately, a profitable business. You want to be able to offer your target customers, what they need; how they need it, when they need it and where they need it. You want to reach them where they are, in a reasonable and affordable manner; and to offer them products, at reasonable prices.
You want to be able to communicate with them effectively; and to place your goods where they regularly shop; You want to be able to deliver them greater value for money; and you want to make a decent profit for all your effort. To achieve these important business goals, it’s important to ensure that the necessary conditions for effective segmentation are adhered to or observed closely. These conditions are accessible, actionable and measurable segments among other factors.
I use various relevant examples to show the benefits of observing the conditions for effective segmentation. Examples of businesses in real estate, fashion, bottom of the pyramid among others.
Subscribe to Dr.Catherine Ngahu's YouTube channel Now!
https://www.youtube.com/c/DrCatherineNgahu
Connect on Social Media with Dr. Catherine Ngahu
Twitter: (@DrNgahu), https://twitter.com/DrNgahu?s=09
LinkedIn: https://www.linkedin.com/in/dr-ngahu-catherine-5590153b/
Facebook: https://www.facebook.com/catherine.ngahu
00:00 Why market segmentation criteria
02:34 Whats market segmentation?
03:09 Accessible market criteria in segmentation
05:44 Actionability criteria in market segmentation
09:59 Substantial market criteria for segmentation
11:14 Market stability condition for segmentation
12:49 Measurability as condition for market segmentation