Explain each of these criteria for market segments: Measurable purchasing power and size.

Explain each of these criteria for market segments: Measurable purchasing power and size.



Measurable: It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. This is important especially for demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behavior (frequency, volume, product groups, mode of payment etc).


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