For a market segment to be viable for targeting, it must be measurable, accessible, substantial, differentiable, and:

Question

Accepted Answer

Actionable. The five criteria for effective market segmentation are: measurable (the size and purchasing power of the segment can be quantified), accessible (the segment can be effectively reached and served), substantial (the segment is large or profitable enough to serve), differentiable (the segments respond differently to different marketing mixes), and actionable (effective programs can be designed to attract and serve the segment). Actionable means the company has the resources and ability to develop marketing programs for the segment.

"Profitable", profitable, is related to the "substantial" criterion but is not the fifth standard criterion. "Growing", growing, is desirable but not one of the five standard requirements. "Homogeneous", homogeneous, relates to the internal similarity within a segment but is not listed as one of the five criteria.

These five criteria help marketers evaluate whether a segmentation approach will actually be useful for strategy. A segment might be clearly identifiable (measurable) but impossible to reach with marketing communications (not accessible). Or it might be reachable but too small to justify the investment (not substantial). All five criteria must be met for segmentation to translate into effective targeting strategy.

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