Requirements for Effective Segmentation
On pages 180 and 181 are a list of requirements for selecting strong markets segments. A marketer should use this list as a check when rating consumer's strengths and weaknesses and potential as a strong profitable consumer segment. If the group of consumer and your ability to reach the segment effectively is high, then you may select that segment as a target. If the reverse is true than you should look at changing the consumer group in some way or reject that group of consumers.
A strong consumer segment must show positive results under the following areas:
? Measurable: The size, purchasing power, and profiles of the segments can be
measured.
? Substantial: The market segments are large or profitable enough to serve. A segment should be the largest possible homogenous group worth pursuing with a tailored marketing program.
? Accessible: The market segments can be effectively reached and served.
? Actionable: Effective programs can be designed for attracting and serving the
segments.
? Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
Assignment:
Review the information on pages 180 and 181. Read the information below and answer the questions at the end of the paragraph.
Americans love their pets, with 62 percent of households ( total U.S. households- 214 million) spending more than $50 billion on them last year.(bulk of spending- 12 billion on dogs, 9 billion on cats) Let's just look at dog owners which contain 46 million households. On the average these households spend 10 billion dollars per year on dog food alone as in dried, moist, canned, snacks.
How would you describe this the pet owner segment for its usefulness and potential as a strong market segment using the list below. Make a short statement for each area.
Measurable -
Substantial -
Accessible -
Actionable -
Differentiable -