A Model of Market Segmentation for the Customers of Mellat Bank in Iran
World Academy of Science, Engineering and Technology 69 2012
A Model of Market Segmentation for the Customers of Mellat Bank in Iran
Nader Gharibnavaz, Hossein Yazdi
Abstract—If organizations like Mellat Bank want to identify its customer market completely to reach its specified goals, it can segment the market to offer the product package to the right segment. Our objective is to offer a segmentation model for Iran banking market in Mellat bank view. The methodology of this project is combined by “segmentation on the basis of four part-quality variables” and “segmentation on the basis of different in means”. Required data are gathered from E-Systems and researcher personal observation. Finally, the research offers the organization that at first step form a four dimensional matrix with 756 segments using four variables named value-based, behavioral, activity style, and activity level, and at the second step calculate the means of profit for every cell of matrix in two distinguished work level (levels α1:normal condition and α2: high pressure condition) and compare the segments by checking two conditions that are 1- homogeneity every segment with its sub segment and 2- heterogeneity with other segments, and so it can do the necessary segmentation process. After all, the last offer (more explained by an operational example and feedback algorithm) is to test and update the model because of dynamic environment, technology, and banking system. Keywords—market segmentation model, banking system, Mellat bank I. INTRODUCTION N every bank, it is necessary to completely understand every customer characteristic and needs specifically. But it is not physically accessible and of course if it can be done, then it cannot be profitable. So what is the solution for these problems? The answer is having and using a segmentation model. By using a segmentation model an organization like a bank can know, distinguish, understand the specific needs for every segment and finally
A Model of Market Segmentation for the Customers of Mellat Bank in Iran
Nader Gharibnavaz, Hossein Yazdi
Abstract—If organizations like Mellat Bank want to identify its customer market completely to reach its specified goals, it can segment the market to offer the product package to the right segment. Our objective is to offer a segmentation model for Iran banking market in Mellat bank view. The methodology of this project is combined by “segmentation on the basis of four part-quality variables” and “segmentation on the basis of different in means”. Required data are gathered from E-Systems and researcher personal observation. Finally, the research offers the organization that at first step form a four dimensional matrix with 756 segments using four variables named value-based, behavioral, activity style, and activity level, and at the second step calculate the means of profit for every cell of matrix in two distinguished work level (levels α1:normal condition and α2: high pressure condition) and compare the segments by checking two conditions that are 1- homogeneity every segment with its sub segment and 2- heterogeneity with other segments, and so it can do the necessary segmentation process. After all, the last offer (more explained by an operational example and feedback algorithm) is to test and update the model because of dynamic environment, technology, and banking system. Keywords—market segmentation model, banking system, Mellat bank I. INTRODUCTION N every bank, it is necessary to completely understand every customer characteristic and needs specifically. But it is not physically accessible and of course if it can be done, then it cannot be profitable. So what is the solution for these problems? The answer is having and using a segmentation model. By using a segmentation model an organization like a bank can know, distinguish, understand the specific needs for every segment and finally