ssd smg l3a segmentation
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8/7/2019 SSD SMG L3A Segmentation
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SSD ± SMG - 3. 1
Special features of servicesSpecial features of services
Intangibility = > Unseen , Untouchable , Nearly ± Invisible
Cannot be displayed , even at PoP
= > Customer Confidence= > Customer Evaluation
Customers seek µevidence of quality¶ (or of skills)µTangibilising the Intangible¶eg SEB seal on an electric meter eg ICAI certificate for ACA / FCA
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Special features of servicesSpecial features of services
Inseparability = > Integrated with µOfferer¶ie Created , delivered & consumed simultaneously
ie marketing & production is almost concurrentService provider participates ,so does the customer !!
Shortest sales channel ie direct sellingCannot be deferred for future / put for parallel useeg Surgeon & µOperations¶ ± No parallel selling
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Special features of servicesSpecial features of services
Inconsistency = > Variability , HeterogeneityDifferent Service providers at different times
Same service provider in different µservicescape¶ / different customer
eg IA Service , JET service by particular provider
Products => WYSIWYG , Services => WYSINWYG ??
Service Quality UniformityArticulation by Customer Helps , Customization
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Special features of servicesSpecial features of services
Inventory (Inability to) = > PerishabilityCannot be µstored¶ till µsold¶
eg Empty seats on a flight / in a concert
Under used bank staff on fri X= Quick service on Saturday !
Direct Opportunity Costs , idle surgeon
Matching demand & supply , peak SR traffic
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Challenges for Service Organizations / MarketersChallenges for Service Organizations / Marketers
Service Quality defining : Intangibility & VariabilityService Quality maintaining : Integrated Offering
Org Structure : Mktng + Opns + HR interlinkedFluctuating Demand : PerishabilityBalancing Act : Standardisation v/s PersonalisationCompetition Thwarting : Patenting Problems / Entry
Consistent Communication : Direct communicationwith customers by frontline.
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SegmentationSegmentation
Process of dividing the total market into smaller groups , such that members of each group are :
Very similar in their buying behaviour Have common factors that influence their demandLikely to respond similarly to a common µstimulus¶Have common characteristics meaningful to
design / delivery / promotion / pricing
The Idea is to make Marketing more accurate / effective
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K ey Points about SegmentationK ey Points about Segmentation
It is a division & sub-division of the Market.Demand-focussed or Consumer-focussed approach.Recognises diversity of Wants & Desires of Consumers.
Different consumers have different responses to same stimuli.It is very information-dependent & knowledge-intensive.Each segment represents a different opportunity.
Marketing will be most effective if appropriate Products are
made available to these segments (markets)That¶s Why the Imp of µProduct ± Markets¶ Concept
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Attributes of SegmentationAttributes of Segmentation
Any given segment should ideally be :
Relevant : Compatible with design / mktng / distbn skillsMeasurable : Numbers & / or Purchasing Power Sizeable : Voluminous enough => Prod Costs => Profits
Reachable : Communication / Distribution
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Segmentation ApproachesSegmentation Approaches
Geographic Segmentation :
Basis of Countries / Regions / States / Cities / TownsEg Food Habits : regional disparities / influencesHelps understand / improve µreach¶eg Growth Mode of Pvt Banks
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Segmentation ApproachesSegmentation Approaches
Demographic Segmentation :Basis of study of µpeople profile & attributes¶Population Size / Age Distribution / Gender Ratio /Income Levels / OccupationHelps target niche markets
eg High End Portfolio management services for HNWIs
eg µCorporate Floor¶ in luxury hotelseg Theme Parks for the Youngeg Shopping Festivals for Women
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Segmentation ApproachesSegmentation Approaches
Psychographic Segmentation :
Basis of Lifestyle Analysis / People¶s AIOHelps to tap people beliefs / interests / traits
Eg Tourism through µadventure sports¶ for outdoor freaksEg Weight Management programs at fitness centresEg µHep¶ Foreign Bank Card v/s µStaid¶ Nationalised Bank
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Segmentation ApproachesSegmentation Approaches
Behavioral Segmentation :
Basis of Benefits Sought or responses expected
Usage Levels / Brand Loyalty / Distribution Channels UsedEg Marriott Chain : Marriott / Courtyard / Residence Inn / Fairfield Inn
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Segmentation ApproachesSegmentation Approaches
Volumes Segmentation :
Heavy Users / Medium / Light / Non-UsersPareto principle may apply (80:20)Helps in customer retention strategies
Helps in moving users up-the-usage-chainEg HDFC Bank¶s netbanking service
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Segmentation Spectrum in ServicesSegmentation Spectrum in Services
Very Broad Spectrum ± Service Attribute Driven
Eg Solicitor¶s Firm = > Individual / Corporate ClientsEg SEBs = > µOne-size-fits-all¶ approach
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Extreme SegmentationExtreme Segmentation
Can we have a Segment of One ?
Inherent Heterogeneity => OpportunityLeveraged Effectively = > Customization Strategy
Eg Large Accounts Businesses => Segment of OneEg Advertising / Consulting => Account /Relationship Manager
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Extreme SegmentationExtreme Segmentation
Can we have µMass Customization¶ ?
Customization around Standardization : Hotels / In-Roo
Customer usage Customization : ATMs / Salad Bar
P-o-P Customization : Health Care / Counselling
Modular Customization : MBA Majors / Tourism
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Benefits of SegmentationBenefits of Segmentation
Easier Marketing : Less Complexity , Smaller UniverseAccurate Marketing : Giving-what-they-want,Customization
Efficient Marketing : Maximum-Bang-for-Each-Buck
Identify & Develop Niche Markets : New Markets / New Buyers
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Segmentation : Mini Case StudySegmentation : Mini Case Study
Banking Services
1. Economic System :
Agriculture Sector : Large / Medium / Small /Marginal
Industrial Sector : Large / Medium / Small /Co-operativServices Sector : Profit Motivated / Not-for-Profit
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Banking Services Segmentation..ContdBanking Services Segmentation..Contd
2. Demographic :
Households : HIG / MIG / LIGGender : M / F : Working Women / HousewivesExpatriates : Foreigners with brand exposureTeenagers : Hostelites
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Banking Services Segmentation..ContdBanking Services Segmentation..Contd
3. Psychographic :
Globe-Trotting Class : µGlobal Gold Card¶
Entry-Level Young Class : Co-Branded CITI-MTV Card
4 . Behavioral :
Brand Loyalty Benefits : Free Cr Card to SB A/C Holders
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Global ImpactGlobal Impact
Multiple choices,difficult decisions.
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Thank YouThank You
For Your For Your ParticipationParticipation