Micro-level Segmentation Having identified macro-segments, it is often helpful to divide them into smaller micro-segments. To isolate the segments effectively, it is advised to move beyond secondary sources of information and conduct market segmentation study. Some of the micro level bases for segmentation are illustrated below: Variables Key Criteria Purchasing Strategies Structure of decision making unit Importance of purchase Organizational innovativeness Personal characteristics
Illustrative Breakdowns Quality, delivery, technical , price and supply continuity Single source, Multiple sources Central decision making, department-wise decision making High importance, Low importance Innovator, Follower Demographics, decision style, risk, confidence, job responsibility
Key criteria For business products, the market can be divided according to which criteria are the most important in the purchasing decision. Some of the criteria include product quality, prompt and reliable delivery, technical , price and supply continuity. Quality Tata Motors in itself is a name which is synonymous to quality. All Tata Products are required to meet certain standards specified by international norms. Tata Motors has the least car breakdown ratio in the country. This signifies the quality and engineering excellence the company adheres to while manufacturing its products. Tata Business Excellence Group (TBExG), a division of Tata Sons, is entrusted with the responsibility of prescribing standards for its subsidiary companies and also looking into the adherence of the standards by the companies. Delivery Tata Motors has 6 manufacturing plants in India at – Jamshedpur, Pune, Lucknow, Pantnagar, Sanand and Dharwad. All the plants have state of the art facilities and are well-equipped to meet sudden change in demands. For example, the plants are built in a manner so as to be able to be modified to produce different vehicles when required. Thus, this ensures timely delivery of any vehicle required. Technical
Tata Motors has the widest and vastest service network in India across all manufacturers. It provides the best in class customer for all its vehicles. It has 38 service offices spread across all of India to cater to the needs of both business and consumer markets. It also has certain customized services like Sampoorna Seva, etc. for business customers only. Price and Supply continuity The price of all Tata Motors products are best in class. Also, supply continuity is never a problem as Tata Motors, owing to its huge stature and size, will always be able to fulfil the requirements of its business customers. Purchasing Strategies Micro-segments can be classified according to buying organization’s purchase strategy. Some buyers seek to have several supplies, giving each one a healthy share of their healthy volume; others are more interested in assured supply and concentrate their purchases with one or two suppliers. Tata Motors has the product portfolio to cater to the needs of business customers who need quality single type vehicles and also for those who need different type of vehicles for different purposes. For example, Tata Motors has trucks like Tata 1512, Tata 1612, 1613, etc. to cater to the business needs of different categories of customers. Organizational Innovativeness Some organizations are more innovative and willing to purchase new industrial products than others. Tata Motors, with its huge range of vehicles, offers these organizations a plethora of diverse choices to choose from. It has vehicles ranging from cars to trucks, to vans to buses. It comes up with its new vehicles both for business customers and defence units every now and then. Thus, for both innovators and followers, Tata Motors offers a wide range of choices to choose from. Personal Characteristics Some micro-segmentation possibilities deal with the personal characteristics of decision makers: demographics, personality, decision style, risk preference or risk avoidance, confidence, job responsibilities, etc. Tata Motors has a portfolio of vehicles to cater to the needs of all segments of people. For example, low end trucks for transportation, buses for commercial use, low-end hatchback cars like Tata Indica and Nano for young executives, defence vehicles for Army, etc. It thus makes its presence felt in all segments and with all sorts of people.