•  Measurable ( how many consumers are there, how much do they have to spend and where are they ).
•  Accessible by communication  and distribution channels ( segments can be reached and served )
•  Different in its response to a marketing mix
•  Not changing too quickly
•  Sustainable enough to be profitable

• Geographic segmentation - This means that the consumers in the market could  be segmented or divided according to the region( by continent, country, state or even the  neighbourhood they belong to ), according to the population, according to urban, suburban and rural areas, and also according to the weather patterns unique to certain geographic areas. 
• Demographic segmentation - This basically means that the consumers are segmented according to the demographic variables such as age, gender, family lifecycle( bachelor, married with children, married without children etc), income, occupation, education, nationality, religion, social class. ethnicity etc.
• Psychographic segmentation - This is when the market is segmented according to the  life styles of the consumers. Some of the psychographic variables used in segmenting include activities, interests, attitudes, opinions and values of the consumers.
• Behaviouristic segmentation – When it comes to behaviouristic segmentation, this is based on the actual behaviour of the consumers towards the product. Some of the behaviouristic variables used in segmenting are benefits sought, usage rate, brand loyalty, user status( first time buyer, regular buyer etc), readiness to buy, and occasions etc.

• Location - The business customers could be segmented according their location  as this is an important factor to consider at times, mainly when shipping costs are concerned.
• Company type - The business customers can even be segmented according to the company size, industry , decision making unit, etc.
• Behavioural characteristics – The industrial customers can also be segmented according to the patterns of purchase behaviour such as usage rate, buying status ( regular, first time buyer, etc.), or even the purchase procedure ( sealed bids, negotiations etc).

• One of the many reasons why organizations segment their markets is because it helps to understand the needs and wants of the customers better. In other words, by dividing the market into various subsets of consumers basically provides and insight to what type of consumers do require what goods and services.
• Another reason for segmenting the market is to help  better target  and position the products of the organization to the exact people who are willing to buy the products or services, rather than trying to try and sell to the entire market. In other words, they are able to target the customers who they are able to satisfy using the proper marketing mix.
• Market segmentation do paves way for a two way communication between the organization and potential buyer.
• Market segmentation basically plays an important part in help maintaining an effective relationship with the customers. To say, because of segmenting the market into various subdivisions, the organizations get to produce goods and services to their selected targets thus satisfying them to their best possible capabilities which on the other hand eventually paves way for a effective long term relationship.
• Another reason why organizations tend to segment the market is due to the fact that it helps to retain their existing consumers while attracting new customers. In other words, because of segmentation,  the organizations are able to provide the customers with value for money thus satisfying them through continuous improvement. As a result, this not only helps to retain the existing customers but also attracts new customers.
• Resources are very limited and it is indeed vital to get the maximum use of the resources available to the organization. As a result, segmenting the market also provides a vital part when it comes to better use of the available resources. To say, this is because once the market is segmented then the organizations are able to use their resources to produce goods and services for their selected targets in order to satisfy their needs.
• Market segmentation also helps to reduce the cost or expenses with regard to various marketing activities and  the  production itself. By producing exactly what the consumers are willing to buy it basically reduces wastage and also the costs related with advertising and promotion. Not only that but also paves way to increase the market share which will eventually increase profits.

It should be said that market segmentation is one of the important strategies that provides an organization with competitive advantage.

However, in spite of one or two disadvantages  such as not concentrating on the entire market at large but dividing the market into small subgroups of consumers, market segmentation contributes  to the success of the organizations in many ways such as helping to better understand the consumer needs and wants,  better target and position the products, to retain existing customers and win new customers, maintains effective relationships with the customers, reduce costs and expenses, increase market share and profits and better use of resources, etc.

Hence so, if the organizations are to face the turbulent, ever changing competitive environment then they obviously have to segment the market before hand, whether it may be consumer or industrial.

(Source: Articlesbase)
* Shameena Silva is a freelance writer.
* The views expressed by the author in this feature are entirely his/her own and do not necessarily reflect the views of SME Times.