Requirement to be kept in mind for effective segmentation:-
1. Measurability:-
- Size of Market should be known
- Size of Market segment decides whether a co. should enter a market. Accessibility:- Accessibility of segment should be known.
- Sustainability:- Market segment should be able to give enough sales/ revenue over a long period of time.
- Action ability:- The market segment should be capable of taking action.
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Before entering a foreign market, a firm must study the same factors and then develop an appropriate marketing plan and suitable strategy to achieve the goals of marketing plan.
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Thus to be successful the 1st step is to choose the right place, the initial venture where returns may be quicker and certain and risk is minimum. Most companies prefer a strategy concentrated on limited key markets (Market Segmentation) After having established itself in one market the firm can always expand to another market.
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