Question

Discuss in no less than 200 words:

Of the six characteristics mentioned below in market segment how would you rank them in order of importance and why?

Identifiable,

Substantial,

Accessible,

Stable,

Differentiable, and

Actionable,

Answer 1

Market segmentation is a marketing concept in which the complete market setup is divided into subsets comprising of consumers with a similar taste, demand or preference in order to increase the market share

1. Identifiable: In any business market segmentation, understanding the customers or the audience is the first step to create an effective strategy. Hence the needs and wants of the customer should be analysed by the company first in order satisfying same through the 4P’s of marketing.

2. Stable: A marketing segmentation strategy should be stable enough for a long period in order to make the marketing effort a success.

3. Differentiable: Differentiation strategies are the approaches which businesses use in order to distinguish itself from its rivals and competitors. While coming up with market segmentation, it is quite important to focus on differentiation to flourish and sustain in the competitive environment.

4. Substantial: Substantial typically means covering a large enough market in order to be potentially profit. It is cost effective to target huge markets than small segments.

5. Accessible: One of the important factors of market segment is that it should be accessible in terms of geography and economy which again depends upon the relevant needs of consumers in that particular segment.

6. Actionable: Any market segment strategy to be successful should be easy and be able to work on it. If strategies are formed which are tough to achieve it then it loses its importance.