Industrialsegmentation

Contents

Introduction Approaches Typesofsegmentation Marketsegmentation Customersegmentation Productsegmentation Examples

1.Introduction

Segmentationistheprocessofdividingor partioningaccordingtotheneed Thegoalofsegmentationistosimplify Thereareno.ofsegmentsareintheindustry accordingtotheparticulardomain Thesoftwareindustrycanbesegmentedbythe natureofproduct,location,customers,etc.

2.Approaches
Thebasicapprachesforsegmantationare:

Twostageappraoch

>Macrosegmenattion >Microsegmenation

Nestedapproach Bottomupapproach

approach(cont.)
Twostageapproach:

Macrosegmenation

herethesgmentationisdoneonthebasisof industrylocation,SICcode,organisationsize.

Microsegmentation

thiscanbedonebyusingproductquality,buyer's attitude,priceetc.

approach(cont.)

Nestedapproach:(

Theaboveapproachsometimesmaybedifficult todifferentiateandmadesegmentation complex.so, Thisprocessallowflexibilityinselectingor avoidingtheecriteriaassuitedtotheirbusinesses

approach(cont.)

Bottomupappraoch(Koltermodel):

#Thisisbuildupapproach. #Insteadofseeingthecustomerasidentical,view themasdiiferentandproceedtoidentifythe similarities

3.SegmenationObjective

4.Typesofsegmentation

Softwareindustrycanhavevarioustypesof segmentationas

*Marketsegmenatation *Cutomersegmentation *Productsegmentation *Brandsegmentation

Accordingtotheindustrydomainsegmentation canbediffered.

5.marketsegmentation

Peopleororganizationsharingwiththedemand ofsimilarproductsandservices Homogenous 4p'sarethekeyconceptofmarketsegmenation asProduct,Pricing,Place,Promotion

Marketseg(cont.)

Geographicsegmentationdividemarketinto location,regions,countries,cities

Classificationofmarket segmentation

Demographicsegmantationdividethemarket intogroupsbasedonage,gender,income. Psycographicsegmentationsocialclass,lifestyle Behavioralsegmentation knowledge,attitude,uses&responsetoproducts

6.Productsegmentation

Segmentationbasedonproduct Itisusefultoclassifytheproductaccordingtothe customerneeds Actionstaken:

#Productsweresegmentedbasedonvolumeand growthpotential #Analysisconfirmedthatmorethan80%of marginscamefromlessthan15%ofproductline

Productseg(cont.)

Results:

#Bottom10%ofproductswereremovedorhad theirpricesraisedwithin3months #helpsinbetterunderstandingofthecustomers needsandwants. #Improvingservicedeliverystandards.

7.CustomerSegmentation

Itisthepracticeofdividingthecustomerbased intogroupofindividuals Itcanbedonebasedon age,gender,interests,spendinghabitsandsoon

Customerseg(cont.)

Customersegmentation usingdecisiontree

Decisiontreedividespopulationintosmaller groupsrepeatdely Atanode,itselecttsasinglevariable Therearemanyapplicationsthatthistypeof hierarchicalsegmentationisuseful Thefigureforcustomerdecisiontreewillbe

CMSdecisiontree

8.Examples
Thefollowingaretheexamplesofsegmentsin variousindustries

HPIndustry

communicationserviceprovider Gaming Media&entertainment

eg(cont.)

Financialservices

Banking Capital&marketing Insurance

TCS

financialservices Bankingservices Manufacturing

Thankyou