Market segmentation allows the company to vary its marketing mix to satisfy each of the market segments it chooses to enter.
　　Managers consider the following:
　　Customer needs that vary due to:
　　characteristics of people and organisations;
　　the purchase and use situation; and
　　users' needs and preferences.
　　Relative market share already achieved (share in relation to that of competitors); and
　　How segments can be identified and serviced (availability of customer data and processing).
　　1 Consumer Segmentation Bases
　　Geographic;
　　Psychographic or lifestyle aspects (feelings and attitudes);
　　Purchasing characteristics;
　　Demographic. There are two main models:
　　Socio-economic grouping
　　Family life cycle segmentation
　　2 Industrial Segmentation
　　Industrial markets can be segmented by applying the same bases used in consumer markets. Typically, the emphasis will be put on:
　　Geographic—most obvious for firms operating internationally;
　　Purchasing characteristics—frequency and size of orders;
　　Products manufactured (e.g. aircraft engines v car engines);
　　Benefit expectations (e.g. guarantee of supply, quality or innovative design); and
　　Company type and size—smaller customers need fewer deliveries, larger ones may expect JIT.
　　3 Segmentation Criteria
　　The following criteria should be considered when deciding on the most appropriate segments to develop and maintain a successful segmentation strategy:
　　Measurability/availability of information;
　　Accessibility of segment (i.e. distribution);
　　Substantiality (i.e. size) of market segment;
　　Stability of buying *.
　　If a segment fails on some of these criteria, then it will be difficult to develop and maintain a successful segmentation strategy.