The act of dividing the existing market into different needs and wants in line with the distinct needs, characteristics and behaviours of these markets in order to serve them with different marketing strategies and mixes (Kotler and Armstrong, 2010). They also added that the ability of the marketers to utilize a proper segmentation is one of the major determinants of their success or failure. While Hill and Jones (2008) argued that segmenting both the existing and potential markets is regarded to be a part of the strategic planning process. They further outlined that when a marketer identify its target markets/customers they will able to produce something which can offer the most value for money. The table on the next page shows available customer segments within the telecom industry.
The available customer segments within the
telecom industry
Customer
segments
|
Characteristics
of the segment
|
The everyday users
|
- More interested in cheaper rates
and good connectivity, this segment comprises of a large portion of
customers. This segment is responsible for causing operators to go into price
wars, as lower prices mean more customers. This segment often shows little loyalty
to operators as they frequently change connections to find cheaper rates.
|
The business users
|
- Target customers of this segment
understandably contribute the significant portion of subscribers in terms of
network usage and value for the industry. Most operators go into partnership
programs with companies in order to provide all necessary products and
services usually at reduced or corporate prices and with augmented benefits
in order to foster profitable, long term relationships.
|
The student users
|
- Comprised of individuals that are
studying in schools, colleges and universities, this segment is a hot
prospect for operators as need for these users to stay connected to their
friends is top priority. This segment can be considered to be a sub-segment of
the everyday user.
|
Couples
|
- Recognizing the need for
"couples" to talk frequently with each other, each package contains
two connections, so that each half of the duo may contact the other at highly
reduced rates.
|
The rural users
|
- Living in rural, dispersed,
heavily underdeveloped areas, the individuals of this segment have a hard
time keeping contact with their friends and relatives. The primary type of
product that target these customers revolve around offering good connectivity
in hard to reach localities and low call rates to increase affordability.
|
The internet users
|
-
While Internet Connectivity is now incorporated (or optionally incorporable)
in almost all products of the industry, there are some users who are turning
to telecom operators solely for Internet connectivity through the use of
mobile/modem devices. Almost every player in the market are now offering this
service.
|