Industry segments

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  • 1. Industrialsegmentation

2. Contents Introduction Approaches Typesofsegmentation Marketsegmentation Customersegmentation Productsegmentation Examples 3. 1.Introduction Segmentationistheprocessofdividingor partioningaccordingtotheneed Thegoalofsegmentationistosimplify Thereareno.ofsegmentsareintheindustry accordingtotheparticulardomain Thesoftwareindustrycanbesegmentedbythe natureofproduct,location,customers,etc. 4. 2.Approaches Thebasicapprachesforsegmantationare: Twostageappraoch >Macrosegmenattion >Microsegmenation Nestedapproach Bottomupapproach 5. approach(cont.) Twostageapproach: Macrosegmenation herethesgmentationisdoneonthebasisofindustrylocation,SICcode,organisationsize. Microsegmentation thiscanbedonebyusingproductquality,buyer'sattitude,priceetc. 6. approach(cont.) Nestedapproach:( Theaboveapproachsometimesmaybedifficult todifferentiateandmadesegmentation complex.so, Thisprocessallowflexibilityinselectingor avoidingtheecriteriaassuitedtotheirbusinesses 7. approach(cont.) Bottomupappraoch(Koltermodel): #Thisisbuildupapproach. #Insteadofseeingthecustomerasidentical,viewthemasdiiferentandproceedtoidentifythesimilarities 8. 3.SegmenationObjective 9. 4.Typesofsegmentation Softwareindustrycanhavevarioustypesof segmentationas *Marketsegmenatation *Cutomersegmentation *Productsegmentation *Brandsegmentation Accordingtotheindustrydomainsegmentation canbediffered. 10. 5.marketsegmentation Peopleororganizationsharingwiththedemand ofsimilarproductsandservices Homogenous 4p'sarethekeyconceptofmarketsegmenation asProduct,Pricing,Place,Promotion 11. Marketseg(cont.) 12. Classificationofmarketsegmentation Geographicsegmentationdividemarketinto location,regions,countries,cities Demographicsegmantationdividethemarket intogroupsbasedonage,gender,income. Psycographicsegmentationsocialclass,lifestyle Behavioralsegmentation knowledge,attitude,uses&responsetoproducts 13. 6.Productsegmentation Segmentationbasedonproduct Itisusefultoclassifytheproductaccordingtothe customerneeds Actionstaken: #Productsweresegmentedbasedonvolumeandgrowthpotential #Analysisconfirmedthatmorethan80%ofmarginscamefromlessthan15%ofproductline 14. Productseg(cont.) Results: #Bottom10%ofproductswereremovedorhadtheirpricesraisedwithin3months #helpsinbetterunderstandingofthecustomersneedsandwants. #Improvingservicedeliverystandards. 15. 7.CustomerSegmentation Itisthepracticeofdividingthecustomerbased intogroupofindividuals Itcanbedonebasedon age,gender,interests,spendinghabitsandsoon 16. Customerseg(cont.) 17. Customersegmentationusingdecisiontree Decisiontreedividespopulationintosmaller groupsrepeatdely Atanode,itselecttsasinglevariable Therearemanyapplicationsthatthistypeof hierarchicalsegmentationisuseful Thefigureforcustomerdecisiontreewillbe 18. CMSdecisiontree 19. 8.Examples Thefollowingaretheexamplesofsegmentsinvariousindustries HPIndustry communicationserviceprovider Gaming Media&entertainment 20. eg(cont.) Financialservices Banking Capital&marketing Insurance TCS financialservices Bankingservices Manufacturing 21. Thankyou