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Dr. Kartik Dave 1
Dr. Kartik Dave 1
Dr. Kartik Dave 1
Kartik Dave
☛ Geographic
➜ Region
➜ City Size
➜ Density
➜ Climate
Income is a popular
demographic variable for
segmenting customers
because income level
influences consumers’ wants
and determines their buying
power.
Occupation and education have
also very important bearing on
Dr. Kartik Dave 17
SOCIO-ECONOMIC
CLASSIFICATIONS IN INDIA
Education
Illite School School SSC/CollegeGrad/ Grad/
Occupation Rate 4 yrs 5-9 yrs HSC Edu Post Post
(Gen) (Prof)
1 2 3 4 5 6 7
Unskilled 01 E2 E2 E1 D D D D
Skilled Workers 02 E2 E1 D C C B2 B2
Petty Traders 03 E2 D D C C B2 B2
Shop Owners 04 D D C B2 B1 A2 A2
Businessman
with employees
•None 05 D C B2 B1 A2 A2 A1
•1-9 C B2 B2 B1 A2 A1 A1
06
•10+ B1 A1
07 B1 A2 A2 A1 A1
Dr. Kartik Dave 18
SOCIO-ECONOMIC
CLASSIFICATIONS IN INDIA
Education
Illite School School SSC/College Grad/ Grad/
Occupation Rate 4 yrs 5-9 yrs HSC Edu Post Post
(Gen) (Prof)
1 2 3 4 5 6 7
Self-employed
Professionals 08 D D D B2 B1 A2 A1
Clerical/
Salesman 09 D D D C B2 B1 B1
Supervisory 10 D D C C B2 B1 A2
Executives
•Junior 11 C C C B2 B1 A2 A2
•Middle/Senior
12 B1 B1 B1 B1 A2 A1 A1
Dr. Kartik Dave 19
DEMOGRAPHIC
SEGMENTATION
The demographic approach
assumes that customers differ
according to some criteria about
themselves.
Demographic information on its
own doesn't define the consumer
needs, it doesn't define the
product or service required, or the
promotional stance to take.
Personal characteristics:
Specific, subtle Motivation/Buyer-seller dyad/
(Micro) Risk perceptions
Segmentation based on
demographics or company
characteristics thus is not very
actionable.
These approaches do not help
the company to get to the
customer with the right offer.
Actionable Segmentation
Value
Joint Optimization
Demographics-based
Segmentation
Low
Low High
Identification of Customers
Dr. Kartik Dave 70
SOLVING THE
SEGMENTATION DILEMMA
Another possible solution to this
problem is to provide opportunities
to individual customers to design
their own products and services by
choosing from a menu of attributes,
components, prices, and delivery
options.
This facility can be provided
through a choiceboard - an
interactive on-line system.
Dr. Kartik Dave 71
SOLVING THE
SEGMENTATION DILEMMA
Dell’s choiceboard expands
consumers’ options in the personal
computer realm.
Cisco Marketplace is an on-line
configurator that allows corporate
customers to create the precise
combination of data networking gear
they need.
Charles Schwab’s Mutual Fund
Screener allows customers to design
their own investment portfolios.
Dr. Kartik Dave 72
SOLVING THE
SEGMENTATION DILEMMA
A choiceboard model of doing
business with individual customers
becomes possible in any industry
when a system of accessible,
integrateable components is
available from which customers can
select and combine options based on
their own priorities.
The choiceboard enables customer
self-segmentation, which is fast,
cost-efficient, and precise.
Dr. Kartik Dave 73
ONGOING SEGMENTATION
PROCESS
Segmentation, whether of
consumer or business customers,
should be considered an ongoing
process and, to the extent
possible, be built into a company’s
marketing intelligence system.
Effective segmentations are
dynamic in two senses: