6.4. Segmentation Effectiveness
Rules for segmentation
- The criteria used for segmentation must have the following characteristics:
- each segment should consist of customers who are relevant to the purchase situation in that they are responsible for making the decision or can affect buying behaviour;
- each segment should have sufficient potential size to justify the time and effort involved in planning specifically for this business opportunity;
- each segment should be distinguishable from other segments, such that each has a distinctive set of requirements and can be served by an equally distinctive marketing strategy;
- each segment should be reachable by sales and distribution channels currently being used or which could be used;
- each segment should be capable of being identified by a set of characteristics, such that the customers in that segment can be reached by a distinctive and cost effective communications strategy;
- The company must be capable of making the necessary changes to its structure, information and decision-making systems so that they become focused on to the new segments.
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