QUESTION ONE (a) Explain the requirements for an effective market segmentation. (5 marks)

Effective market segmentation requires the following:<br /><br />1. Size: The segment should be large or small enough to be profitable. It should have enough potential customers to justify the resources that will be spent on targeting and serving them.<br /><br />2. Accessibility: The segment should be reachable through effective marketing channels. It should be possible to effectively communicate with the segment and deliver the product or service to them.<br /><br />3. Responsiveness: The segment should respond similarly to marketing efforts. The customers within the segment should have similar needs and preferences that make them likely to respond positively to the same marketing strategies.<br /><br />4. Stability: The segment should be stable and not likely to change significantly in the foreseeable future. This means that the needs and preferences of the customers within the segment should remain relatively constant.<br /><br />5. Differentiability: The segment should be different from other segments in terms of its needs and preferences. This means that the marketing strategies used to target the segment should be different from those used to target other segments.