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1. Measurable and Obtainable: The size, profile and

other relevant characteristics of the segment must be measurable and obtainable

in terms of data. If the information is not obtainable, no segmentation can be

carried out.

2. Substantial: The segment should be large enough

to be profitable. For consumer markets, the small segment might

disproportionately increase the cost and hence products are priced too high.

3. Accessible: The segment should be accessible

through existing network of people at an affordable cost.

4. Differentiable: The segments should be different

from each other and may require different 4Ps and programs.

5. Actionable: The segments which a

company wishes to pursue must be actionable in the sense that there should be

sufficient finance, personnel, and capability to take them all.

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Q: What are requirements for effective segmentation?
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