lecture+9+mkt+325+design+iii[1]

Design III

Segmentation & Mass Customization

Lecture 9

© 2010 S Sriram, All Rights ReservedWinter 2010

What are the Various Ways to Segment Markets?


PRIZM by Claritas


Segmentation of Diners


Jobs-to-be-Done Framework

• Customers hire a product to get a job done

P r o d u c tV ie w

D e m o g r a p h i c V ie w

- - -J o b t o b e D o n e Vie w

Market Definition Handheld wireless device market

The traveling salesperson

Use small snippets of time productively

Competitors Blackberry, Palm etc.

Notebook Computers

Cell phones, WSJ, CNN Airport News, doing nothing

Features to Consider

Digital camera Bandwitdth for data E-mail

E-Mail E-Mail Headline news

Word/ExcelDownloadable CRM data/functionality

Entertainment/Games


Segmentation Based on Jobs to be Done: Milkshake

• Segment 1: “hire” milkshakes in the morning to entertain them during their long commute

~ Competes with bananas, snickers bars, radio, boredom

~ Likes ease of use (one hand, no mess) and viscosity (want slow consumption)

• Segment 2: “hire” milkshakes in the evening to make parents feel like they’re good parents

~ Competes with small toys, movies, angry children

~ Likes taste but doesn’t like viscosity (want fast consumption)


Segmentation based on Job-to-be Done for Swimwear


Segmentation Scheme for Marriott

- - -J o b t o b e D o n e

Clean, quiet place to work in the evening

Inexpensive to stay as a family

Serve as a home away from home

http://www.google.com/imgres?imgurl=http://www.fortcampbellmwr.com/images/courtyard-marriott-logo.jpg&imgrefurl=http://www.fortcampbellmwr.com/Events/&h=433&w=675&sz=178&tbnid=mbWE1m36iS_4tM:&tbnh=89&tbnw=138&prev=/images?q=marriott+courtyard+logo&hl=en&usg=__CoU9po6Ihb7QBbUVTVaHtnbDqcA=&ei=b398S8PCFdGVtgfmzZjEBQ&sa=X&oi=image_result&resnum=2&ct=image&ved=0CA4Q9QEwAQ


What Job-to-be-Done does I-Pad Address?

Four Faces of Mass Customization

Gilmore & Pine


Gilmore and Pine’s 4 approaches to MC

Type of Mass Customization

Description

CollaborativeA customized product determined through a dialogue with customers

Adaptive A standard product that users alter themselves

Cosmetic A standard product presented differently to different users

Transparent Based on customers’ past behavior - no direct customer input


Gilmore and Pine’s 4 approaches to MC

Transparent

CosmeticAdaptive

CollaborativeChangeable

Fixed

Fixed Changeable

Product

Representation


Collaborative Customization: Timbuk2


Adaptive Customization: AdiColor from Adidas

http://www.press.adidas.com/resourceimage.aspx?raid=11380&download=true

http://www.press.adidas.com/resourceimage.aspx?raid=11376&download=true


Cosmetic Customization: M&Ms


Transparent Customization: Amazon’s Recommendations


Scion


Spreadshirt


The Sleep Number Bed


Dell


Create your Own Label: Brewtopia


Other Examples


Catalina Marketing


Nideid

© 2010 S Sriram, All Rights ReservedWinter 2010 25

• Is TiVo an example of Mass customization?

• To which category does TiVo belong?

Discussion

http://www.tivo.com/jump/redir.asp?main=HPNav&sub=HP_Redirect&URL=/0.0.asp


What are the benefits of Mass Customization?

lecture+9+mkt+325+design+iii[1]

Education

s sriram

rights reservedwinter

example of mass customization

transparent customization

collaborative customization

cosmetic customization

adaptive customization

segmentation of diners