Market segmentation is the fundamental component of a market-based strategy. A market segment is a specific group of customers with distinctive needs, purchasing behaviors and descriptive characteristics. (Best, 2000) By classifying markets into subsectors, targeting marketing efforts to meet the technical and other requirements of each of these, organizations may be able to secure a greater competitive position than if they attempted to meet the general requirements of the market as a whole. There are four criteria that must be met for market segmentation to be effective. A market segment should be identifiable, substantial, accessible and stable. Identifiable, at which there should be observable indicators that allow the segment to be defined and quantified. Substantial, meaning that the segment should be of sufficient size to make the effort involved in the segmentation worthwhile. Accessible, i.e. it should be possible to specifically target the segment using existing communication and distribution channels. Stable, so that after segment classification there is sufficient time to capitalize on the investment involved in the segmentation. (Baker, 1995) Markets can be segmented using a variety of philosophical approaches. In terms of operationalizing these approaches, demographic approaches, geographic approaches, socioeconomic approaches, and psychographic approaches are commonly used. There are numerous demographic bases for segmenting markets such as age, stage of the family life cycle, gender, ethnicity and household composition. Age segmentation is one of the most used bases for market segmentation which is generally easy to measure the size of the segments. Individuals typically transition through a series of family roles, and at each stage of development, an individual's purchasing behaviors are likely to change, as will their ability to pay for those purchases. Gender is also a very commonly used basis for segmenting markets as it is easy to measure and companies can get a reasonably good idea of ​​the gender-specific market in a given area. There is evidence that various ethnic groups maintain distinctive preferences in their purchases that set them apart from the native community. Households differ in size and composition, and these differences are associated with different purchasing behaviors. Geographic approaches are usually used as a basis for market segmentation. Very often there are very good geographical reasons why product preferences should vary from one region to another. Many companies have managed to adapt their product offerings to meet the needs of various regional segments.