What is the segment selection criteria ?

Primarily, a marketer should clearly define  market segmentation criteria not only ensure that customers are more likely to identify   and purchase   the product that is right for them; it also minimizes wastage of resources, reducing the time spent marketing the wrong products to the wrong customers. It is important, however, to focus resources on market segments whose size, growth and profitability is good, both immediately and in the long run. The following 5 market segmentation criteria should be useful when planning your own company’s market segmentation strategy.

A market segment should be:

1.    Measurable:Market segments are usually measured in terms of sales value or volume (i.e. the number of customers within the segment). Reliable market research should be able to identify the size of a market segment to a reasonable degree of accuracy, so that strategists can then decide whether, how, and to what extent they should focus their efforts on marketing to this segment.

2.    Substantial: Simply put, there would be no point in wasting marketing budget on a market segment that is insufficiently large, or has negligible spending power. A viable market segment is usually a homogenous group with clearly defined characteristics such as age group, socio-economic background and brand perception. Longevity is also important here: no market segmentation expert would recommend focusing on an unstable customer group that is likely to disperse, or change beyond recognition within a year or two.

3.    Accessible: When demarcating a market segment, it is important to consider how the group might be accessed and, crucially, whether this falls within the strengths and abilities of the company’s marketing department. Different segments might respond better to outdoor advertising, social media campaigns, television infomercials, or any number of other approaches.

4.    Differentiable: An ideal market segment should be internally homogeneous (i.e. all customers within the segment have similar preferences and characteristics), but externally heterogeneous. Differences between market segments should be clearly defined, so that the campaigns, products and marketing tools applied to them can be implemented without overlap.

5.    Actionable: The market segment must have practical value – its characteristics must provide supporting data for a marketing position or sales approach, and this in turn must have outcomes that are easily quantified, ideally in relation to the existing measurements of the market segment as defined by initial market research.

On sum, I think a good understanding of the principles of market segmentation is an important building block of your company’s marketing strategy – the foundation for an efficient, streamlined and ultimately successful approach to customers, and a means of targeting your products and services accurately, with the minimum of wastage.

Identify bases for segementation

Determine the important or relevant characteristics of each.

Evaluate the potential & commercial attractiveness of each.

Select one or more segements

Develop detailed product positioning for sepected segments.

Develop a marketing mix for each selected segment.

Thanx for the invitation.

I agree with your answer. Thanks for the invitation  ...................

Market Segmentation: is the process of dividing the market into homogenous groups of consumers in their desires and their ability purchasing and dealing with each part independently as a market. The main objective of market segmentation to sectors and segments is that most sellers are not willing to offer their products to buyers on the basis of the achievement of the desire of every individual customer, but rather seek to stereotyping something to offer to their customers and therefore the Alshq segmentation can not be used in all cases market segment: Market Segment: is a collection of both cases, customers and potential common characteristics which unite and one goal.Retail concept is based on three assumptions:1. The consumers are different2. Consumers differences linked to the different market demand3. The consumer segments can be isolated from the overall market

Totally agree with the expert answers and would sumon it up as simple as possible : 

1- Segment Size 

2- Growth of Segment 

3- Value of Segment 

4- Stability 

5- Current company position within segment 

6- Ease of entry into segment 

7- Ease of competitive entry into segment 

8- Size and strength of competitors 

9- Adabtability and Cutomization 

I agree with experts answer. Thanks for the invitation. .

Experts suggest that a market segment should be:

• Easily and clearly identifiable
• Measurable
• Accessible by promotion, communication and distribution channels
• Different in its response to a marketing mix
• Stable (not changing too quickly)
• Appropriate for the company’s policies and resources
• Substantial enough to be profitable

Thanks for the invite ............................ agreed with the answers Mr. Emmanuel Wamweta

Market segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, businesses, or countries that have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them. Market segmentation strategies are generally used to identify and further define the target customers, and provide supporting data for marketing plan elements such as positioning to achieve certain marketing plan objectives. Businesses may develop product differentiation strategies, or an undifferentiated approach, involving specific products or product linesdepending on the specific demand and attributes of the target segment.