The market segmentation evaluation criteriaAfter constructing a set of market segments in the STP process, the market segments are then subject to evaluation against a set criteria.This is a checkpoint stage in the STP process. Its goal is to ensure that the segments meet basic requirements and guidelines for usable segments.Main Evaluation Criteria for Market

How to segment a market? (Technical aspects)There are two main approaches: cluster analysis (if data is available), otherwise segmentation trees.Cluster analysisCluster analysis is an analysis designed to categorize objects to a pre-defined number of different groups, with each group being relatively similar on a range of selected attributes. The resultant groups are referred to as

Geographic Segmentation Base AdvantagesConsiders cultural differences of different regionsGood for firms with limited geographic reach needing to select a specific target marketGreat when there is significant socio-economic diversity and significant consumer behavioral differences across regionsGeographic Segmentation Base LimitationsAssumes that consumers in a geographic area are similar, which is generally unlikely across a broad areaUsually needs

Quick Study Notes for Market segmentationDefinition of market segmentationThe process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets.What are segmentation bases?A definable characteristic, identity or behavior of an individual consumer that can be utilized to classify consumers into related groups.Why Use