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Requirements of Market Segments

Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified.

Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes.

Durable: the segments should be relatively stable to minimize the cost of frequent changes.

Accessible: the segments must be reachable through communication and distribution channels.

Substantial: the segments should be sufficiently large to justify the resources required to target them.

Bases for Segmentation in Consumer Markets
Geographic
Demographic
Psychographic
Behavioralistic

Geographic Segmentation
Region: by continent, country, state, or even neighborhood
Climate: according to weather patterns common to certain geographic regions
Size of metropolitan area: segmented according to size of population
Population density: often classified as urban, suburban, or rural

Demographic Segmentation
Gender
Family size
Family lifecycle
Income
Education
Ethnicity
Religion
Social class
Age
Occupation
Nationality
Generation: baby-boomers, Generation X, etc.

Psychographic Segmentation
Activities
Attitudes
Interests
Values
Opinions

Behavioralistic Segmentation
Benefits sought
Readiness to buy
Occasions: holidays and events that stimulate purchases
Usage rate
User status: potential, first-time, regular, etc.
Brand loyalty