Market Segmentation and Strategic Targeting

  1. What are the conventional bases of segmenting the target audience? What relevance do segmentation platforms like Demographic, Geographic, Psychographic and Behavioral (including VALS & PRIZM models) hold in the wake of increased competition, private label proliferation, rivalry from unorganized sector and e-tailing gaining traction?
  2. How do you characterize the nature of competition (between the companies in an industry and also the intense rivalry from private labels/unorganized sector) and the efficacy of segmentation bases?

III. On what basis do you think the companies/in the industries featured in the Exhibit I of the case study across the product-price pyramid have segmented their markets, targeted their customers and positioned their products?

  1. What is the difference between CRM and CEM? For what kind of companies/industries do you think customer experience can be an ideal or suggested segmentation basis?
  2. Do you think Customer Experience Management can be applied more effectively in Service Sector than Manufacturing Sector?
  3. In the wake of experience economy, should customer experience be looked at as a complement or a substitute for the existing segmentation bases?

Mandatory Readings

  • Leon G. Schiffman, et al., “Market Segmentation and Strategic Targeting”, Consumer Behavior, 10th

Edition, Pearson Publications, 2010 – To understand the efficacy of designing and delivering unique ‘customer experience as the basis of consumer segmentation

  • B. Joseph Pine II and James H. Gilmore, “Welcome to the Experience Economy”, Harvard Business Review, July-August 1998
  • Theodore Kinni, “What Experience Would You Like with That?”, Strategy + Business, Booz & Co, August 24th

2010 – To understand the basic tenets of customer experience as the major differentiator for companies