Segment

A market segmentconsists of agroup of customers who share a similar set of needs and wants. The marketer’s task is to identify
the appropriate number and nature of market segments and decide which one(s) to target

To be useful, market segments must rate favorably on five key criteria:
1. Measurable. The size, purchasing power, and characteristics of the segments can be measured.
2. Substantial. The segments are large and profitable enough to serve. A segment should be the
largest possible homogeneous group worth going after with a tailored marketing program. It
would not pay, for example, for an automobile manufacturer to develop cars for people who
are less than four feet tall.
3. Accessible. The segments can be effectively reached and served.
4. Differentiable. The segments are conceptually distinguishable and respond differently to
different marketing-mix elements and programs. If married and unmarried women respond similarly to a sale on perfume, they do not constitute separate segments.
5. Actionable. Effective programs can be formulated for attracting and serving the segments.
When different groups of consumers have different needs and wants, marketers can define multiple
segments. The company can often better design, price, disclose, and deliver the product or service
and also fine-tune the marketing program and activities to better reflect competitors marketing

Sources:

⠀ Kotler, P., Keller, K. L.(2012). Marketing management(14th ed.). New Jersey: Prentice Hall (p. 236)

⠀ Kotler, P., Keller, K. L.(2012). Marketing management(14th ed.). New Jersey: Prentice Hall (p. 254-256)