Market segmentation can be defined as the process of dividing a market into different homogeneous groups of consumers.
Market consists of buyers and buyers vary from each other in different ways. Variation depends upon different factors like wants, resources, buying attitude, locations, and buying practices. By segmentation, large heterogeneous markets are divided into smaller segments that can be managed more efficiently and effectively with products and services that match to their unique needs. So, market segmentation is beneficial for the companies serving larger markets.
Criteria for selecting Market Segments
A segment should be measurable. It means you should be able to tell how many potential customers and how many businesses are out there in the segment.
A segment should be accessible through channels of communication and distribution like: sales force, transportation, distributors, telecom, or internet. Continue reading