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The five requirements for an attractive market segment are as
follows13:
1.Measurable: The size, growth rate, and purchasing power of
the market segment should be quantifiable. This means there
should be data available about it. A consumer’s profiles and
data provide marketing strategists with the necessary
information on how to carry out their campaigns 1.
2.Accessible: The market segment should be easily reachable
at an affordable cost. This helps determine how certain ads can
reach different target markets and how to make ads more
profitable1.
3.Substantial: The market segment should be large enough to
be profitable. It doesn't make sense to try and reach an
unjustifiable number of people as it would just waste
resources. However, you also don't want to market the brand
to a group too small that the business doesn't become
profitable1.
4.Differentiable: Different target markets should respond
differently to different marketing strategies. If a business is
only targeting one segment, then this might not be as much of
an issue. But for example, if your target market is college
students, then it's essential to create a marketing strategy that
both freshman students and senior students react to in the
same positive way1.
5.Actionable: The internal capabilities of the company should
be sufficient to meet each segment’s needs3. This means that
the company should have the resources and ability to
effectively pursue the chosen market segments1.
Source(s)
1. 5 Requirements for Effective Segmentation - Commence
2. Five criteria of good segments - FutureLearn
3. 5 types of market segmentation and how to use them
4. 5 Requirements For Market Segmentation - BokasTutor
5. 5.4 Essential Factors in Effective Market Segmentation
