Page 127 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes  Substantial and Viable: The segment chosen should be large and profitable. It should be
cost-effective for the service marketer to address the segment.
Intensity in Competition: More the intensity of competition, less attractive is the segment.

Actionable: If the segments are attractive and have the potential for profit making, then

effective marketing programmes can be designed.

Example: NIIT found that the Chinese market had huge potential and designed innovative
marketing programmes to serve that market.
Differentiable: The segments should be distinct from each other, behaving and responding

differently. Or else, the process becomes like Undifferentiated Marketing.


Caselet Market Segmentation for Mobile Banking

t is absolutely true that mobile banking is experienced different from one market to
another. It is often the source of a lot of confusion when different people discuss
Imobile banking from different contexts. Before we discuss mobile banking it is therefore
important to first define the markets that one target when deploying mobile banking.

The most obvious first segmentation of the market for mobile banking is to look at those
consumers with a strong, existing relationship with banks, and those that do not have a
relationship with a bank. This segmentation should range from some-one without any
banking relationship (some-one that does not have a bank-account and also never had
one), to (on the extreme right) a sophisticated user of banking services. This would typically
be some-one with a relationship with more than one bank, have multiple bank accounts
and/or credit cards.). Another dimension should be an indication of the degree in which
a consumer is connected to other consumers. Some consumers because of their work or
role in society have a bigger need to interact with a more diverse group of consumers,
others are much more localised in their interaction.
In looking at the different segmentations, one would be able to identify an individual that
are typically employed in a low income position or survives off grants, pensions or
money sent from family working in the city or abroad. Life’s routine is predictable for this
individual with activities organised around the work and family. The rural citizen would
typically live in a low cost abode. Credit worthiness is low with access to expensive micro
lending as a source of lending only. All transactions are in cash and almost no savings
exist. This is an individual that either living in a village in some rural area or in slums in
or around cities. These people are the masses that turn the economy with their labour.
Their need for banking services is limited to small savings, money remittance and some
electronic payments. They usually get access to these financial services in a very expensive
way, often with high risks as all of their transactions are in cash. They are often referred to
as the bottom of the pyramid, but yet they are active in the economy and represent a large
portion of the population in many countries and can be reached by mobile banking with
the right product or service.
Another segment would consist of individuals that are much more affluent. They are the
people that always have the latest gadgets and are more expansive in their exposure to
financial products. They typically have the latest phones, have more than one bank
relationship and travel extensively for work and pleasure. Their assets include stocks and
bonds and they use the Internet extensively to transact electronically. They are often
aware of transactional risks associated with card transactions and the Internet and are
often uncomfortable about their exposure to fraudulent activities. In addition to providing
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