1. Imagine that you are presenting a workshop on the requirements for effective segmentation. Briefly describe the five items that will help your audience understand your topic.
Today we will be talking about effective segmentation a decision to use a market segmentation strategy should rest on consideration of five important criteria that affect its profitability. In order for segmentation to be effective; the market must be (1) measurable (2) accessible, (3) substantial, (4) actionable and differentiable. If these five criteria above are fulfilled segmentation will be an attractive marketing strategy for a successful business. So what is measurable? Measurable it means the size, needs, purchasing power and characteristics of the customer in the section should be measurable and marketers can determine which customer belongs to which segment and which do not. Measurability is an important element of market segmentation. Though a new segment is identified, without knowing just how many potential consumers it encompasses, it may not be worth the risk. Next we will look at accessible, this criterion refers to the ease effectively and economically reaching chosen segment marketing efforts through existing marketing institution, such as distributing channels, advertising media and sale force. There should be a middleman to distribute these products. Another criterion is substantial this segments should be sufficiently large in terms of customers and profit and to justify the resources required to target them. Then there is actionable, actionable should be actionable for marketing purposes. Organizations should be able to design and implement the marketing mix to serve the chosen segment. Last but not least there is differentiable, there must be clear-cut basis for dividing customers into meaningful homogeneous groups. All the segments should be different than each other and should not overlap. If they do, they should come under one segment. That is...
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