635-3-2 Market Segmentation and Implementation

635-3-2 Market Segmentation and Implementation

Define market segmentation. What are the ideal business conditions for market segmentation to be implemented?

Market segmentation is the division of a market into small groups of buyers with similar characteristics such as needs, behaviors, product preferences, and financial status. The splitting of the market in different parts enables a business to better reach the targeted customers for their products (Debo, Toktay & VanWassenhove, 2005).
                                                Conditions for Market Segmentation

An effective marketing plan starts with a survey of the market to establish the degree of diversity that exists among the consumers. Various conditions enhance market segmentation. Firstly, market segments must be measurable. The number of consumers, their purchase abilities and their financial profiles should be measurable to aid in establishing the quantity of products to be produced for that market (Debo, Toktay & VanWassenhove, 2005). Secondly, the market segments should be accessible using the available systems such as the media, intermediaries and business owner with minimum cost. It is therefore vital to establish how a particular group will be accessed when delivering products to them.

Thirdly, each segment should be large enough to aid the business in getting profits. Large markets enhance the low cost of production due to the advantages of economies of scale as well as high sales volume in such markets (Budeva & Mullen, 2014). Market segments need to be distinguishable and also should respond differently to market needs. This will make it easier for salespersons to identify which group of consumers requires a particular product.

Lastly, market segmentation must be actionable. It is not possible for one company to serve the whole market. The business should identify areas that they can serve and not others. This will help them in being objective as well as upholding the principle of social responsibility through the provision of quality needs as well as considering consumer needs.


Market segmentation is essential in aiding the business to position itself in the market. Segmentation of the market enables the business to develop different strategies of reaching the markets as well as putting mechanisms in place of ensuring that all consumer needs are met.





Debo, L. G., Toktay, L. B., & Van Wassenhove, L. N. (2005). Market segmentation and product technology            selection for manufacturable products. Management Science, 51(8), 1193-1205.             doi:10.1287/mnsc.1050.0369

  1. Budeva, D., & R. Mullen, M. (2014). International market segmentation. European Journal of Marketing, 48(7/8), 1209-1238. Doi: 10.1108/EJM-07-2010-0394