Professional Studies for Screen-Based Media
Foundation Degree South West
Market Segmentation

Market criteria for effective segmentation


In order for segmentation to be viable there are some criteria that the selected groups must comply with. A segment needs to be identifiable and measurable. Marketers should be able to distinguish those who fit in the segment and those who don°t.

A segment needs to have a distinctive identity that makes it different from the rest as well as visible elements that make it measurable. For instance marketing research could help a company identify different segments according to the type of holidays consumers of a certain age aspire to take. Sometimes, as the Marketing Manager at Marwell Zoo has found, it is difficult to find your core customers.

Heather Moore, Marketing and Promotions Officer Marwell Zoo, Hampshire

A segment has to be accessible. That means that reaching individuals within the segment should be economically sustainable. If an exclusive club in Barbados, for example, The Sandy Lane wanted to target up-and-coming executives around the world, they could easily find that reaching this market would be extremely costly.

A segment has to be substantial. That is, it must be large enough to justify a separate marketing programme. When considering whether or not there is a profitable segment, a company should take into account the segment°s purchasing power. While the prospect of opening a Hard Rock Cafe in Cuzco, Peru, would be interesting, those with disposable income are so few, that the venture would not be cost-effective.

A segment has to be responsive. A hotel is planning to invest a substantial amount of money in targeting environment-friendly consumers, however if it is foreseen that the segment will not respond favourably to the marketing programs designed for them, then the market is said to be not responsive and the effort not worth undertaking.