This document discusses industrial segmentation, including the different approaches and types. There are several approaches to segmentation, including two-stage (macro then micro), nested, and bottom-up approaches. The main types of segmentation are market segmentation, customer segmentation, and product segmentation. Market segmentation divides the market based on geography, demographics, psychographics, and behavior. Customer segmentation divides customers based on factors like age, interests, and spending habits. Product segmentation classifies products according to customer needs. Examples of industry segments discussed include communication, gaming, banking, and manufacturing.

1. Industrial segmentation

2. Contents
● Introduction
● Approaches
● Types of segmentation
● Market segmentation
● Customer segmentation
● Product segmentation
● Examples

3. 1.Introduction
● Segmentation is the process of dividing or
partioning according to the need
● The goal of segmentation is to simplify
● There are no.of segments are in the industry
according to the particular domain
● The software industry can be segmented by the
nature of product,location,customers,etc.

4. 2.Approaches
The basic appraches for segmantation are:
● Two stage appraoch
­>Macro segmenattion
­>Micro segmenation
● Nested approach
● Bottom­up approach

5. approach(cont.)
Two stage approach:
● Macro segmenation
­here the sgmentation is done on the basis of
industry location,SIC code,organisation size.
● Micro segmentation
­this can be done by using product quality,buyer's
attitude,price etc.

6. approach(cont.)
● Nested approach:(
The above approach sometimes may be difficult
to differentiate and made segmentation
complex.so,
This process allow flexibility in selecting or
avoiding thee criteria as suited to their businesses

7. approach(cont.)
● Bottom­up appraoch(Kolter model):
# This is “build­up” approach.
# Instead of seeing the customer as identical,view
them as diiferent and proceed to identify the
similarities

8. 3.Segmenation Objective

9. 4.Types of segmentation
● Software industry can have various types of
segmentation as
* Market segmenatation
* Cutomer segmentation
* Product segmentation
* Brand segmentation
● According to the industry domain segmentation
can be differed.

10. 5.market segmentation
● People or organization sharing with the demand
of similar products and services
● Homogenous
● 4 p's are the key concept of market segmenation
as Product,Pricing,Place,Promotion

11. Market seg(cont.)

12. Classification of market
segmentation
● Geographic segmentation­divide market into
location,regions,countries,cities
● Demographic segmantation­divide the market
into groups based on age,gender,income.
● Psycographic segmentation­social class,lifestyle
● Behavioral segmentation­
knowledge,attitude,uses & response to products

14. 6.Product segmentation
● Segmentation based on product
● It is useful to classify the product according to the
customer needs
● Actions taken:
# Products were segmented based on volume and
growth potential
# Analysis confirmed that more than 80% of
margins came from less than 15% of product line

15. Product seg(cont.)
● Results:
# Bottom 10% of products were removed or had
their prices raised within 3 months
# helps in better understanding of the customers’
needs and wants.
# Improving service delivery standards.

16. 7.Customer Segmentation
● It is the practice of dividing the customer based
into group of individuals
● It can be done based on
age,gender,interests,spending habits and so on

17. Customer seg(cont.)

18. Customer segmentation
using decision tree
● Decision tree divides population into smaller
groups repeatdely
● At anode,it selectts a single variable
● There are many applications that this type of
hierarchical segmentation is useful
● The figure for customer decision tree will be

19. CMS decision tree

20. 8.Examples
The following are the examples of segments in
various industries
● HP Industry
­communication service provider
­ Gaming
­Media & entertainment

21. eg(cont.)
● Financial services
­Banking
­ Capital & marketing
­ Insurance
● TCS
­ financial services
­ Banking services
­ Manufacturing

22. Thank you