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SOCIO ECONOMIC CLASSIFICATION
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Older SEC Technique
• It is based on two parameters
• Occupation( 7 types)
• Education of the chief earner (12 types)
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Classitionfication of table
• A1,A2 WHITE COLLAR JOBS
• B1,B2 SSC QUALIFIED JOBS
• C,D CLIMBERS(SKILLED JOBS)
• E1,E2 UNSKILLED LABOUR.
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Three things about new sec
• what is socio-economic classification ?
•Why is it being changed?
•How sec will be measured now?
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Socio economic classification• It is the way of segmenting consumers based
on their purchasing power.
• It is surveyed on 2,56,000 house holds responses of their buying behaviour.
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Why is it being changed?
• Indian consumer profile dramatically changed over the years.
• Besides marketers need a better way to finely segment upper end customers.
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How sec will be measured now?
• Households will now be grouped into 12 classess based on two factors
1.the education of chief wage of the earner
2.No of consumer durable
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Consumer durables
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Education of the chief earner
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How it will help in marketing?
• Marketers need to plan their media expenses.
• So they will get an idea what customer already have, and what they willing to buy.
• It mainly uses to predict the purchasing power.
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Draw back of sec
• Socio Economic Classification (SEC) lack in discriminating the truly potential households and audience.
• SEC is an indicator or a pointer towards the “likely to consume” but often defies the reality of not pointing clearly towards the “consuming class”.
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What is HPI?• HPI allocates high scores for less penetrated product categories and services. On the other hand, lower scores to higher penetrated categories or mass consumed categories.
• HPI eliminates judgmental factors and is therefore a more systematic approach, across all segments of households, from the “super affluent”.
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Factors taken in it
• HPI also takes these factors
1. demographics,
2. Highest Education in the household,
3. Number of working members,
4. education of the housewife.
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How they categorise urban vs rural?• UPPER most segment crorepathis
(who also spend and consumer)
• MIDDLE segment core target for growth of very many categories
• The LOWER most segment, “volume generator” for many FMCG categories and lower end durables and services
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By HARI KRISHNAN N