Requirements for Effective Segmentation

There are various ways to segment, but not all segmentations are effective.  To be useful, market segments ought to have certain characteristics.  Amongst the most significant of these are following:

1.   Measurability is the degree to which the buying power, size, and profiles  of a market segment can be measured.
2.   Accessibility refers to the degree to which a market segment may be reached and served.
3.   Substantiality refers to the degree to which a market segment is adequately large or profitable.
4.   Differentiation refers to the degree to which a market segment may conceptually be illustrious and has the ability to   respond differently to different marketing mix elements and programs.
5.  Action ability is the degree to which effective programs may be designed for attracting and serving a particular market segment.