Page 109 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

Market Segmentation
Segmenting is not an easy task. One single market can be segmented in several ways. Most
segmentation techniques prove to be helpful in defining the e-Business project strategy. In other cases,
segmentation does not provide any new insight into the marketplace and will not allow any benefits to
strategic planning team.
Core Need of Client
It is important for an organization to consider the core need of market segments that it plans to target.
Researching further into each of the segments will disclose the core need of the client. To survive in a
highly competitive market, it is essential to match the core benefits of service or product with the core
need of the client. As the environment alters, the user’s core needs in most of the market segments will
alter as well.

Individuals searching for inexpensive airline tickets or holidays obtain their details
via the travel agents. As environment changes, several Web sites offer core benefits
that match the client’s core needs better than travel agents. Thereby, the core needs
of the clients are served via other channels.
Define Operational Model per Market Segment

Each of the market segments defined will have an operational model which would fulfill the core needs
of user segment effectively compared to other operational models. Three inputs that are needed to
determine the operational model are:
1. The market segments.

2. The core needs of every market segment.
3. The knowledge about technology and the acceptance of the same in the marketplace.
An operational model helps associate with the back-office infrastructure required to satisfy the
recognized core needs in every market segments.

Let us consider that a Web site concentrates on offering the online booking
facilities for the guest houses worldwide. Herein, the market segmentation does
not include the business travelers, as they prefer upper class hotels that indulge in
luxury rather than the basic, economical and functional guest houses. The Web site
will thereby target its clientele amongst people who prefer to stay in guest houses.
An issue might arise during the booking of accommodation request. Even though
many guests are linked to Internet, they do not have constant online connectivity
nor do they use a central booking register. During these cases, double bookings
will pose a problem, if the central booking register is not functional. But the quick
online booking and confirmation needs of the market segments can be satisfied
using the SMS-based messages on GSM networks. As the online client makes
booking on the Web site, a text message including the booking details is generated
and sent to the owner of the guest house. Then, the guest house owner accepts or
denies the request based on its own booking register. Thereby, the client
requesting for an accommodation is notified immediately or via an SMS whether
the booking was successful or not.

Thereby, the core needs of the selected market segments focused on the organization to satisfy the main
needs of client base.

Reengineering is often irreversible. So, the reengineering processes should be rechecked
before implementing them.

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