Market Segmentation in Telecom Sector: Its Role and Scope in Cellular Services in India
Market Segmentation in Telecom sector: Its Role and Scope in Cellular Services in India
Abstract
Market segmentation plays a very crucial role in service sector. It helps in customizing the services to meet the needs of customers, so that they can get maximum satisfaction. It helps a customer to select a service that suits to his budget. Segmentation also helps in identifying the appropriate distribution channel for the services. It plays a very crucial role in increasing the return on investment by minimizing the investments in resources, marketing, production facilities etc. Telecommunication services are one of the very important pillars of infrastructure development in a nation. It plays a pivotal role in developing the other sectors in an economy. India has a vast potential for telecom market which is evident from the report of “Indian Telecom Industry, 2008”. The study aims to study the role of market segmentation in cellular services and to suggest scope for improvement in segmentation of market for the same.
Key Words Market segmentation, three dimensional, psychographic, demographic, behavioral
Introduction
A market segment is a group of potential or actual customers who have similar needs, wants, preferences or buying behavior. Market segmentation is a process of dividing a heterogeneous market into homogenous groups with common needs and requirements. It is a complex process of identifying the consumers with similar needs and grouping them into one category. The best segments must have Potential, Lifespan, Accessibility, and Profitability. The main job in market segmentation is identifying which segments provide value in terms of potential, lifespan, accessibility and profitability; because a sales strategy’s effectiveness increases according to one’s capacity to size segments, identify them, and dissect them[1].
Market segmentation plays a very crucial role, especially in service sector. It helps in customizing the services to meet the needs of
Abstract
Market segmentation plays a very crucial role in service sector. It helps in customizing the services to meet the needs of customers, so that they can get maximum satisfaction. It helps a customer to select a service that suits to his budget. Segmentation also helps in identifying the appropriate distribution channel for the services. It plays a very crucial role in increasing the return on investment by minimizing the investments in resources, marketing, production facilities etc. Telecommunication services are one of the very important pillars of infrastructure development in a nation. It plays a pivotal role in developing the other sectors in an economy. India has a vast potential for telecom market which is evident from the report of “Indian Telecom Industry, 2008”. The study aims to study the role of market segmentation in cellular services and to suggest scope for improvement in segmentation of market for the same.
Key Words Market segmentation, three dimensional, psychographic, demographic, behavioral
Introduction
A market segment is a group of potential or actual customers who have similar needs, wants, preferences or buying behavior. Market segmentation is a process of dividing a heterogeneous market into homogenous groups with common needs and requirements. It is a complex process of identifying the consumers with similar needs and grouping them into one category. The best segments must have Potential, Lifespan, Accessibility, and Profitability. The main job in market segmentation is identifying which segments provide value in terms of potential, lifespan, accessibility and profitability; because a sales strategy’s effectiveness increases according to one’s capacity to size segments, identify them, and dissect them[1].
Market segmentation plays a very crucial role, especially in service sector. It helps in customizing the services to meet the needs of
Bibliography: “Indian Telecom Industry Report, 2008” Keskar Dhananjay, 2007, Mobile Telephony Business: An Introduction, Icfai University Press Neal, William D and John Wurst (2001): Advances in Market Segmentation, American Marketing Association, spring TRAI report, 2010 [6] Neal, William D and John Wurst (2001): Advances in Market Segmentation, American Marketing Association, spring