Segmentation Criteria

Segmentation criteria

Market segmentation is when an organization divides a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes. The new healthy sports drink by Coca Cola is targeted towards athletes who desire a healthy rejuvenating beverage during a workout. The segmentation criteria that will affect the healthy sports drink’s target market selection are the market must be of substantial size with purchasing power that can be measured. With data on how many people that have gym memberships makes it easy to identify and measure this segment. This segment must also be accessible, meaning that the individuals that are targeted should be able to be reached so that data can be collected. The targeted group is easily accessible at any gymnasium, recreational park, or sporting complex in America with individuals who strive to maintain active lifestyles. The targeted group is anyone who is actively involved in physical activity. According to "U.S. Health Club Membership Exceeds 50 Million, Up 10.8%; Industry Revenue Up 4% As New Members Fuel Growth" (2011), The International Health, Racquet & Sportsclub Association (IHRSA) announced today that U.S. health club membership reached 50.2 million in 2010. Numbers like this proves the segment to be substantial and profitable enough to serve.

Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs (Armstrong & Kotler, 2011 pg. 175). Psychographic segmentation would affect the target market because buyers are divided into different segments based on lifestyle or personality characteristics. The healthy sports drink is marketed to consumers who maintain active lifestyles through a number of physical activities. Behavioral segmentation would be useful to segment the market to gain...