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Market segmentation of mobile communication in Bangladesh

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.
- 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.