Study Notes for market segmentation evaluation criteria

The market segmentation evaluation criteria

After 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 Segments


Means that consumers in the segment should be similar (in regards to their needs or behavior)


Means that each segment of consumers should be relatively unique in the market (each segment should be distinct)


Data should be available to measure the segment


The segment should be large enough for the firm (in terms of sales and profits), to justify it as a target market


The segment should be reachable through distribution channels and media


The firm needs to be able to implement a distinctive offering to the potential target market


Each segment should respond better to a distinct marketing mix, as opposed to a mass-market (generic) marketing approach

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