In order to talk about a useful segmentation, the following conditions must be met:

1. People in the same group should be homogenous, i.e. similar to each other in one way of another. This is in fact the basis of effective segmentation: each segment must be similar in terms of needs or chosen characteristics.

2. People in different groups should be heterogeneous. Together with the first point, this would demonstrate that consumers are effectively divided into sets of differentneeds.

3. Some data should be available for each segment so that measurements can be made as regards to the size of the market, the general characteristics of consumers constituting that market, details of their buying behavior, and thus, the overall attractiveness of the segment.

4. The segments should be substantial either in terms of number (sales potential) or in terms profit per unit sold (profit potential). Each company is likely to have a “minimum” requirement to be profitable.

5. The segments should also be accessible so that an effective distribution and communication strategy can be established.