Market Segmentation
Market Segmentation
The purpose for segmenting a market is to allow the company’s marketing or sales program to focus on the prospects that is most likely to purchase the company product. It will help to assure the highest return for the sales expenditures of company. The need for market segmentation arises as markets are becoming increasingly varied. Market segmentation enables the user to take advantage in clearly understanding the market needs. Market segmentation also helps to identify growth opportunities for the bank.
There are a few main approaches to market segmentation, demographic segmentation, geographic segmentation, socio-economy variables, psychographics segmentation and life-style segmentation. In addition, the bank must make sure that the all these segmentations should be measurable, accessible, sizable and distinct in each of the group.
Maybank segment their customer mainly by using the demographic approach. The bank segments customers based on their age, gender, family size, income, occupation, education, religion and race. For example, Maybank designed a type of insurance which only for senior citizen, named Senior Personal Accident. It is a plan for seniors aged 45 – 70 that pays for high medical bills, disability, nursing care and recovery expenses due to accidents.
Furthermore, psychographic segmentation is the consumers are divided according to their lifestyle, personality, values. Maybank is designing different types of investment instrument for different needs in the market. For instance, a wealth management service like Unit Trusts is prepared for consumer who face problem in choosing the suitable investment tools for themselves. Besides that, Maybank also designs products which suit different people in accordance to their risk behaviour.
On the other hand, Maybank segments their customer via religion approach too. This can be seen from one of its products, the Islamic Investment.