Requirement to be kept in mind for effective segmentation:-
- 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.
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.
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.