Characteristics of Effective Market Segmentation
The conditions for effective market segmentation are:
1) Measurable: There must be some ways of measuring the size and purchasing power of the segments.
2) Accessible: The firm (Bank) should be able to reach the segments. They should be able to locate the segments at designated places or reach certain media.
3) Sustainability: The segments should be of sufficient size and value to be profitable.
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4) Differentiable: The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs.
5) Predictable: The segment can only be of value to the marketer if he can predict its future behavior with some confidence.
6) Profitability: The market must be serviced at a profit, not at a loss.
7) Identifiable: This is the degree to which a marketer can identify the specific requirements of the market of interest.
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