Customer segmentation techniques - Revision history

Xtomp36: /* Customer segmentation in SimProcess */

2016-01-24T22:11:49Z

‎Customer segmentation in SimProcess

Xtomp36: /* Clustering approach */

2016-01-24T22:11:38Z

‎Clustering approach

Xtomp36: /* Possible costumer segmentation techniques */

2016-01-24T22:11:27Z

‎Possible costumer segmentation techniques

Xtomp36: /* A priory segmentation */

2016-01-24T22:11:13Z

‎A priory segmentation

Xtomp36: /* A priory segmentation */

2016-01-24T22:10:36Z

‎A priory segmentation

Xtomp36: /* Possible costumer segmentation techniques */

2016-01-24T22:08:39Z

‎Possible costumer segmentation techniques

Xtomp36 at 22:04, 24 January 2016

2016-01-24T22:04:07Z

Xtomp36: /* Simulator and simulation game */

2016-01-24T21:44:33Z

‎Simulator and simulation game

Xtomp36: /* Simulators and simulation game */

2016-01-24T21:44:10Z

‎Simulators and simulation game

Xtomp36: /* Marketing Management Simulation Game */

2016-01-24T21:42:02Z

‎Marketing Management Simulation Game

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 [[File:cs_model.jpg]]
-Figure 2 - Possible model for SimProcess <ref>Allocation of Marketing Resources to Optimize Customer Equity [online]. [cit. 2016-01-23]. Available at: http://www1.unisg.ch/www/edis.nsf/SysLkpByIdentifier/3038/$FILE/dis3038.pdf</ref>
+Figure 3 - Possible model for SimProcess <ref>Allocation of Marketing Resources to Optimize Customer Equity [online]. [cit. 2016-01-23]. Available at: http://www1.unisg.ch/www/edis.nsf/SysLkpByIdentifier/3038/$FILE/dis3038.pdf</ref>
 This model could be used as a bases for possible design of a SimProcess simulation. Of course a generation of customers’ needs to be added. After that this could lead to finding out how many customers of different groups the business could have.

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 [[File:hi_cluster.jpg]]
-Figure 1 - graphical example of hierarchical clustering <ref> Hierarchical clustering [online]. [cit. 2016-01-23]. Available at: http://people.revoledu.com/kardi/tutorial/Clustering/Numerical%20Example.htm </ref>
+Figure 2 - graphical example of hierarchical clustering <ref> Hierarchical clustering [online]. [cit. 2016-01-23]. Available at: http://people.revoledu.com/kardi/tutorial/Clustering/Numerical%20Example.htm </ref>
 =Customer segmentation in SimProcess=

← Older revision		Revision as of 22:11, 24 January 2016
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	There are many possible customer segmentation techniques, I will briefly explain some of the more common ones. The type of segmentation used will very on a lot of factors (goals, costs, etc.).		There are many possible customer segmentation techniques, I will briefly explain some of the more common ones. The type of segmentation used will very on a lot of factors (goals, costs, etc.).
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		+	[[File:segment.jpg]]
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		+	Figure 1 - graphical illustration on how usage of customer segmentation effects business revenue due to development of additional products, which is only one of many possible outcomes.

	==A priory segmentation==		==A priory segmentation==

← Older revision		Revision as of 22:11, 24 January 2016
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	This is one of the most simple approaches, where the market is divided according to already existing segments (that is why a priory – “pre-existing”) such as gender or age. In some businesses this approach of segmentation could be sufficient, for example the technology sector has a strong relationship between age and usage or product preferences. In other sectors it might be more difficult to segment the customer base using this method. Without any doubt sing this method is better than pure mass marketing, however it is still quite crude. <ref> Market segmentation [online]. [cit. 2016-01-23]. Available at: http://www.dobney.com/Research/segmentation.htm </ref>		This is one of the most simple approaches, where the market is divided according to already existing segments (that is why a priory – “pre-existing”) such as gender or age. In some businesses this approach of segmentation could be sufficient, for example the technology sector has a strong relationship between age and usage or product preferences. In other sectors it might be more difficult to segment the customer base using this method. Without any doubt sing this method is better than pure mass marketing, however it is still quite crude. <ref> Market segmentation [online]. [cit. 2016-01-23]. Available at: http://www.dobney.com/Research/segmentation.htm </ref>
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−	~~[[File:segment.jpg]]~~
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−	~~Figure 1 - graphical illustration on how usage of customer segmentation effects business revenue due to development of additional products, which is only one of many possible outcomes.~~

	==Usage segmentation==		==Usage segmentation==

← Older revision		Revision as of 22:10, 24 January 2016
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	[[File:segment.jpg]]		[[File:segment.jpg]]
		+
		+	Figure 1 - graphical illustration on how usage of customer segmentation effects business revenue due to development of additional products, which is only one of many possible outcomes.

	==Usage segmentation==		==Usage segmentation==

← Older revision		Revision as of 22:08, 24 January 2016
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	This is one of the most simple approaches, where the market is divided according to already existing segments (that is why a priory – “pre-existing”) such as gender or age. In some businesses this approach of segmentation could be sufficient, for example the technology sector has a strong relationship between age and usage or product preferences. In other sectors it might be more difficult to segment the customer base using this method. Without any doubt sing this method is better than pure mass marketing, however it is still quite crude. <ref> Market segmentation [online]. [cit. 2016-01-23]. Available at: http://www.dobney.com/Research/segmentation.htm </ref>		This is one of the most simple approaches, where the market is divided according to already existing segments (that is why a priory – “pre-existing”) such as gender or age. In some businesses this approach of segmentation could be sufficient, for example the technology sector has a strong relationship between age and usage or product preferences. In other sectors it might be more difficult to segment the customer base using this method. Without any doubt sing this method is better than pure mass marketing, however it is still quite crude. <ref> Market segmentation [online]. [cit. 2016-01-23]. Available at: http://www.dobney.com/Research/segmentation.htm </ref>
		+
		+	[[File:segment.jpg]]

	==Usage segmentation==		==Usage segmentation==

← Older revision		Revision as of 22:04, 24 January 2016
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	This is one of the most simple approaches, where the market is divided according to already existing segments (that is why a priory – “pre-existing”) such as gender or age. In some businesses this approach of segmentation could be sufficient, for example the technology sector has a strong relationship between age and usage or product preferences. In other sectors it might be more difficult to segment the customer base using this method. Without any doubt sing this method is better than pure mass marketing, however it is still quite crude. <ref> Market segmentation [online]. [cit. 2016-01-23]. Available at: http://www.dobney.com/Research/segmentation.htm </ref>		This is one of the most simple approaches, where the market is divided according to already existing segments (that is why a priory – “pre-existing”) such as gender or age. In some businesses this approach of segmentation could be sufficient, for example the technology sector has a strong relationship between age and usage or product preferences. In other sectors it might be more difficult to segment the customer base using this method. Without any doubt sing this method is better than pure mass marketing, however it is still quite crude. <ref> Market segmentation [online]. [cit. 2016-01-23]. Available at: http://www.dobney.com/Research/segmentation.htm </ref>
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		+	==Usage segmentation==
		+
		+	Another rather simple approach of customer segmentation. There are two methods for usage segmentation either the customers are divided based on their weight of use or by time and place of usage. With the first method it is obvious that customers who buy more are more important to the business that the other ones. In here for example a “Pareto analysis” could be used to identify the top 20 % of most valuable customers. This method is normally used in business-to-business markets. The second method divides customers based on time and place. At different times customers may want different products available, so this method takes that into consideration. <ref> Market segmentation [online]. [cit. 2016-01-23]. Available at: http://www.dobney.com/Research/segmentation.htm </ref>

	==Needs based segmentation==		==Needs based segmentation==

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 =Simulator and simulation game=
-This part of the article shows two cases of customer segmentation usage, where simulation is a factor.
+This part of the article describes two cases of customer segmentation usage, where simulation is a factor.
 ==Market Segmentation Simulator==

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 Other than this it is easier to imagine the usage of customer segmentation in simulations. As the segmentation is already done and it is used only as input for the simulation.
-=Simulators and simulation game=
+=Simulator and simulation game=
 ==Market Segmentation Simulator==
 There is a conjoint simulator web application, which gives the ability to predict the market share of new products and to measure the gain or loss in market share based on changes to existing products. this application uses the Conjoint Analysis described before in this article. So the user needs to define the attributes and levels, which are then used to create product concepts (profiles) by the simulator application. The goal of the application is to simulate the market share of the products to establish a baseline.

← Older revision		Revision as of 21:42, 24 January 2016
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	==Marketing Management Simulation Game==		==Marketing Management Simulation Game==
		+	This simulation game has some aspects of customer segmentation, so I find it worth mentioning in this article. It is developed by Cesim SimBrand and targets the marketing decision making process. It has 8 customer segments, 2 market areas and six different products. The game covers many others areas of marketing, than just customer segmentation, like: product life cycle management, positioning, after sales services, pricing, sales forecasting, competitor analysis and profitability. Its expected outcome is to help the participant to get a better understanding of the whole process. <ref> Marketing Management Simulation Game [online]. [cit. 2016-01-24]. Available at: http://www.cesim.com/simulations/cesim-simbrand-marketing-management-simulation-game </ref>

	=Summary=		=Summary=