Micro-level Segmentation

Having identified macro-segments, it is often helpful to divide them into

smaller micro-segments. To isolate the segments effectively, it is advised
to move beyond secondary sources of information and conduct market
segmentation study. Some of the micro level bases for segmentation are
illustrated below:
Variables
Key Criteria
Purchasing
Strategies
Structure of
decision making
unit
Importance of
purchase
Organizational
innovativeness
Personal
characteristics

Illustrative Breakdowns
Quality, delivery, technical support, price and supply
continuity
Single source, Multiple sources
Central decision making, department-wise decision
making
High importance, Low importance
Innovator, Follower
Demographics, decision style, risk, confidence, job
responsibility

Key criteria
For business products, the market can be divided according to which
criteria are the most important in the purchasing decision. Some of the
criteria include product quality, prompt and reliable delivery, technical
support, price and supply continuity.
Quality
Tata Motors in itself is a name which is synonymous to quality. All
Tata Products are required to meet certain standards specified by
international norms. Tata Motors has the least car breakdown ratio
in the country. This signifies the quality and engineering excellence
the company adheres to while manufacturing its products. Tata
Business Excellence Group (TBExG), a division of Tata Sons, is
entrusted with the responsibility of prescribing standards for its
subsidiary companies and also looking into the adherence of the
standards by the companies.
Delivery
Tata Motors has 6 manufacturing plants in India at Jamshedpur,
Pune, Lucknow, Pantnagar, Sanand and Dharwad. All the plants
have state of the art facilities and are well-equipped to meet sudden
change in demands. For example, the plants are built in a manner
so as to be able to be modified to produce different vehicles when
required. Thus, this ensures timely delivery of any vehicle required.
Technical Support

Tata Motors has the widest and vastest service network in India
across all manufacturers. It provides the best in class customer
support for all its vehicles. It has 38 service offices spread across all
of India to cater to the needs of both business and consumer
markets. It also has certain customized services like Sampoorna
Seva, etc. for business customers only.
Price and Supply continuity
The price of all Tata Motors products are best in class. Also, supply
continuity is never a problem as Tata Motors, owing to its huge
stature and size, will always be able to fulfil the requirements of its
business customers.
Purchasing Strategies
Micro-segments can be classified according to buying organizations
purchase strategy. Some buyers seek to have several supplies, giving
each one a healthy share of their healthy volume; others are more
interested in assured supply and concentrate their purchases with one or
two suppliers. Tata Motors has the product portfolio to cater to the needs
of business customers who need quality single type vehicles and also for
those who need different type of vehicles for different purposes. For
example, Tata Motors has trucks like Tata 1512, Tata 1612, 1613, etc. to
cater to the business needs of different categories of customers.
Organizational Innovativeness
Some organizations are more innovative and willing to purchase new
industrial products than others. Tata Motors, with its huge range of
vehicles, offers these organizations a plethora of diverse choices to
choose from. It has vehicles ranging from cars to trucks, to vans to buses.
It comes up with its new vehicles both for business customers and
defence units every now and then. Thus, for both innovators and
followers, Tata Motors offers a wide range of choices to choose from.
Personal Characteristics
Some micro-segmentation possibilities deal with the personal
characteristics of decision makers: demographics, personality, decision
style, risk preference or risk avoidance, confidence, job responsibilities,
etc. Tata Motors has a portfolio of vehicles to cater to the needs of all
segments of people. For example, low end trucks for transportation, buses
for commercial use, low-end hatchback cars like Tata Indica and Nano for
young executives, defence vehicles for Army, etc. It thus makes its
presence felt in all segments and with all sorts of people.