END-USER
ANALYSIS
334
the full-service segment. This study supports a trade-off between price and service
outputs, recognizing that a segment’s demand for service outputs really reflects its
willingness to pay for them—and highlights the need to include sensitivity to pric-
ing levels in any such analysis.
Some interesting insights arise from Table 10.1. First, marketing channels serv-
ing any of the specific segments need to deliver more of some service outputs than
others. Thus, it is unlikely that any one-channel strategy can satisfy the needs
of all segments. For example, the lowest price is highly
valued in only one seg-
ment (i.e., lowest total cost segment, representing only 16 percent of respondents).
The majority of the market simply is not driven primarily by price considerations.
This information is invaluable for designing channel strategies that respond to the
service output needs of customers, even if doing so implies higher prices than a
no-frills solution might entail. In contrast, all the segments value installation and
training
support at least moderately; therefore, this support capability must be
designed into every single channel solution. Similar insights stem from the rows
of Table 10.1, which reveal the contrasts among segments in terms of other spe-
cific service output demands. In Figure 10.2, we provide an overview of the steps
involved in developing a service output segmentation template.
Appendix 10.1 outlines the process in Figure 10.2 in greater detail, with prototypical
examples for completing a service
output segmentation template, which is a tool for seg-
menting end-users to facilitate targeting by specific channel structures. Accompanying
Appendix 10.1 is a blank service output segmentation template in Table 10.2, which
can assist channel managers conducting end-user segmentation analyses.
T A R G E T I N G E N D - U S E R S E G M E N T S
After segmenting the market and identifying each end-user segment’s distinct ser-
vice output needs, the channel manager can integrate these insights into an overall
Step 1:
Identify Segments
Being Served
Step 2: Establish Service
Output Demand for Each
Segment
Step 3: Look for Patterns
Allocate points across outputs by
segment; deine High, Medium, and
Low demand segments
Identify which segments value a particular
output over all others
FIGURE 10.2
Identifying
Service
Output
Segments
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335
marketing channel design and management plan. In particular, this information
should be used to:
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