The manufacturer may also seek to segment the retailers (to whom
the wholesalers sell) – its intermediaries – according to relevant seg-
mentation criteria, which may include:
●location
●size
●type of merchandise which it specializes in
●number of brands stocked
●socio-economic catchment area
●ethnic catchment area
●hours of opening
●number of branches, etc.
Finally, the manufacturer may wish to segment and gain an under-
standing of its final consumer. The final consumer (to whom the
retailer sells) may be segmented on the basis of:
●family income
●socio-economic status
●size and status of family
●type of occupation
●type of residence
●need for special features, etc.
Once the relevant segmentation base (or bases) has been determined
the market segments or subgroups within the buyer, intermediary
and consumer levels in the distribution chain can be identified. We
can then examine the opportunities offered by these segments. This
leads to the identification of the most attractive segments and the
development of appropriate strategies for winning and retaining
customers within them.
Many companies adopting relationship marketing are now
seeking to undertake much more specific and targeted market seg-
mentation. Increasingly organizations are moving to a second level
of submarket segmentation by practising micro-segmentation. In
some cases this leads to marketing to a ‘segment of one’^3 at the con-
sumer level. A good example of this is Tesco Plc, the leading UK
supermarket chain. Tesco has introduced a loyalty card called the
Tesco Clubcard which enables it to mass-customize^4 individualized
offerings to final consumers. (Case 2.3 explores this initiative in
greater detail.)
38 Relationship Marketing