1. Useful
1.1. Measurable: The size, purchasing power, and profiles of the segments can be measured
1.2. Substantial: The market segments are large or profitable enough to serve.
1.3. Accessible: The market segments can be effectively reached and served.
1.4. Actionable: Effective programs can be designed for attracting and serving the segments
1.5. Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
2. Segmentation: is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs
2.1. Geographic Segmentation
2.2. Demographic Segmentation: Divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
2.3. Psychographic Segmentation: Divides buyers into different groups based on lifestyle or personality characteristics. Marketers also use personality variables to segment markets.
2.4. Behavioral Segmentation
2.4.1. Occasion Segmentation: means grouping buyers according to occasions when they get the idea to buy, actually make their purchase, or use the purchased item.
2.4.2. Benefit Segmentation: means grouping buyers according to the different benefits that they seek from the product.
2.4.3. User Status: means segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product.
2.4.4. Usage Rate: means grouping markets into light, medium, and heavy product users.
2.4.5. Loyalty Status: means dividing buyers into groups according to their degree of loyalty.
3. Targeting: Select the segment or segments to enter.
3.1. Target Marketing Strategies
3.1.1. Undifferentiated (mass) marketing
3.1.1.1. Marketing Mix -> Whole market
3.1.2. Differentiated (segmented) marketing
3.1.2.1. Using Differentiated marketing strategy, a firm decides to target several market segments and designs separate offers for each. Marketing Mix 1 -> Segment 1 Marketing Mix 2 -> Segment 2 Marketing Mix 3 -> Segment 3
3.1.3. Concentrated (niche) marketing
3.1.3.1. Focus on 1 or a few small segments
3.1.4. Micromarketing (local or individual) marketing: is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.