STRATEGIC MANAGEMENT 1- Market segmentation 2- Retention-based segmentation 3- Does the internet help the market segmentation easier?

1. STRATEGIC MANAGEMENT
1- Market segmentation
2- Retention-based segmentation
3- Does the internet help the market
segmentation easier?
NIK MUHAMMAD AUFAA BIN
NIK MAHADI
2012656806

2. Market Segmentation
Can be defined as subdividing of a
market into distinct subsets of
customers according to needs and
buying habits.
This also mean that the market is
being divided into smaller group
based on the segmentation.

3. 4 types of market segmentation
strategies:
1) Demographic
▫ Divide the market into groups based on; age, gender,
race, occupation and income.
▫ Example: Garnier company introduced the “Garnier
For Men” which is a hygiene product that focus for
men only based on gender differentiation.
2) Geographic
▫ Divided based on; state, region, country or group of
countries.
▫ Example: “Budu”, which is a fish sauce that was really
popular for Kelantanese. So, as for the manufacture of
the product, they only aim people who lived in
Kelantan as their target area based on the region
segmentation.

4. 3) Psychographics
▫ Psychographics or lifestyle segmentation divides
the market into groups based on social class,
personalities, activities, and interest of consumer.
▫ Example: Company which produced luxury cars
such as “Ferrari” is only targeting persons with
high income and high social class.
4) Behavioral
▫ Based on user behaviors itself, including usage of
product, price, branding, and loyalty of product.
▫ Example: People nowadays tends to buy a
branded product such as Apple I-Phone because
of its quality and the brand is well-known around
the world.

5. Retention-Based Segmentation
Three (3) values that companies commonly tag their
active customer:
Tag #1: Is this customer at high risk of canceling the
company’s service?
-the signal can be found when the customer
no longer using their service.
-For example, the Maxis broadband users
are no longer pay the bill to activate their
account.
Tag #2: Is this customer worth retaining?
-This can be determined whether the post-
retention profit generated from the customer
is higher than cost to retain them.
-For example, The Maxis user use the
broadband service but they did not pay the
service since last two month.

6. • Tag #3: What retention tactics should be
used to retain this customer?
-To attract the customer, the company
need to know which tactics are most
likely to be successful.
-The tactics can be from giving
discount, promotion, or even gift that
can attract the customer attention to
stay with the product.

7. Does the Internet Make Market
Segmentation Easier?
• Yes, because the internet help the marketers gain
the customers just from online in their related
segments. For example is Mudah.my. We can see
there is a variety of segmentation made in this site
such as vehicles, electronics, properties, and
others. Besides that, there segment is also divided
based on the region. For example, you want to buy
a used car below RM5,000 in Kelantan area and
you can really find it using the segmentation that
included in that site. This really help the customer
and the marketers reach the specific topics within
the specific area. This situation shows that the
internet really make the market segmentation
easier.

8. Thank You