Requisites of an Effective Segmentation for MB0046 Assignment of SMU MBA

It is the solved assignment of “List out the 5 important requisites of an effective segmentation by giving suitable examples”. It is the assignment of MB0046 (Marketing Management) for SMU MBA. You may view Define Customer Relationship Management and International Market Entry Strategies also.

Requisites of Effective Segmentation:

1. Measurable and Obtainable: The size, profile and other relevant characteristics of the segment must be measurable and obtainable in terms of data. If the information is not obtainable, no segmentation can be carried out. For example, Census of India provides the data on migration and education level, but do not specifies how many of the migrated employees are educated and if educated how many are there in white color jobs.
2. Substantial: The segment should be large enough to be profitable. For consumer markets, the small segment might disproportionably increase the cost and hence products are priced too high. For example, when the cellular services started in India cost of the incoming calls and outgoing calls were charged at Rs. 12/minute. As the number of subscribers grew, incoming calls become free.
3. Accessible: The segment should be accessible through existing network of people at a affordable cost. For example, Majority of the rural population still not able to access the internet due to high cost and unavailability of connections and bandwidth.
4. Differentiable: The segments are different from each other and require different 4Ps and programs. For example, Life Insurance Corporation of India needs separate marketing programs to sell their insurance plans, unit plans, pension plans and group schemes.
5. Actionable: The segments which a company wishes to purse must be actionable in the sense that there should be sufficient finance, personnel and capability to take them all.

Segmentation of market is the biggest task in our country for the diversity. The task always changes with the region, state and community.