Market Segmentation - Criteria For Segmenting

Criteria For Segmenting

An ideal market segment meets all of the following criteria:

  • It is possible to measure.
  • It must be large enough to earn profit.
  • It must be stable enough that it does not vanish after some time.
  • It is possible to reach potential customers via the organization's promotion and distribution channel.
  • It is internally homogeneous (potential customers in the same segment prefer the same product qualities).
  • It is externally heterogeneous, that is, potential customers from different segments have different quality preferences.
  • It responds consistently to a given market stimulus.
  • It can be reached by market intervention in a cost-effective manner.
  • It is useful in deciding on the marketing mix.


Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs (and/or common desires) as well as common applications for the relevant goods and services. Depending on the specific characteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, such as location or income. Marketing campaigns can then be designed and implemented to target these specific customer segments.

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