There are several ways to segment a market. To be useful and effective market segments should have five different characteristics. Could you please list these and briefly explain each?
Market Segmentation Approach
<br>Individuals with diverse product needs have heterogeneous needs.
<br>Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product needs, there are clusters of needs.
<br>The purpose is to design a MM(s)(marketing mix) that more precisely matches the needs of individuals in a selected market segment(s).
<br>A market segment consists of individuals, groups or organizations with one or more characteristics that cause them to have relatively similar product needs.
<br>Criteria needed for segmentation
<br>For segmentation to occur:
<br>1. Segments must have enough profit potential to justify developing and maintaining a MM
<br>2. Consumer must have heterogeneous (different) needs for the product.
<br>3. Segmented consumer needs must be homogeneous (similar)
<br>4. Company must be able to reach a segment with a MM, IE Review to reach Delaware undergraduates.
<br>How do marketers reach children?
<br>* Cartoons on Saturday
<br>* Cereal boxes