Page 138 - DMGT510_SERVICES_MARKETING

Unit 7: Service Segmentation and Targeting

Notes
Example: Indian Railways will have a train, say, the Howrah-Bombay Mail, travelling
from Chhatrapati Shivaji Terminus, Mumbai to Howrah, Calcutta. The core offer of the train
service was transporting people from one place to another. This was the same, irrespective of
whether the passenger travelled in a general compartment, Sleeper Class, First Class, A.C. 2
Tier, A.C. 3 Tier or A.C. first Class.
In above example, the customer paid extra for slight variations but the core product was the
same. Irrespective of what the customers paid and how they travelled, they all reached their
destinations at the same time, at the same place.
The same was true for airlines. In a flight, the passengers could be seated in economy, business
and first class sections. But they all reach their destinations at the same time in the same place.
A movie theatre would have sections called Dress Circle, Balcony and Stalls. But the viewers
would see the same movie, in the same air-conditioned hall and experience the same ambience.
The difference in their ticket prices would be based on the difference in seat cushioning and
distance from the screen. Consumers paid more or less according to their different need for
peripheral benefits, the differentiated pricing intentionally succeeding in creating social
stratification represented by different seating areas.

In Differentiated and Undifferentiated Marketing, the marketer looked for sufficient similarities
in the preferences of the consumer. He evaluated the market by the size or number of consumers
who had the same preferences, to enable him to sell service products across the whole market.

Task Prepare a report on the segmentation strategy used by any one of the following:
a. LIC
b. Deutsche Bank

c. Vodafone

7.4.3 Niche Marketing

In Niche Marketing or Concentrated marketing or Focus Marketing, the service marketer looked
for a very specialized segment. His entire offer – and marketing resources – was tailored towards
this very special group of consumers. The size of the market was small, the consumers had very
special preferences and there were no other players catering to these customers.

Example: Dilip Chhabria or ‘DC’ as he is known in India re-designs cars for, and services
car buyers who are looking for exclusive designs for the cars available in the market. His
company, DC Cars Pvt. Ltd., redesigns the body on the same platform of the vehicles and his
service is custom-driven.

Portfolio Management Services (PMS) are given by banks to exclusive customers who want
specialized services for their investible funds. No two demands could be the same.

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