The Definition of Market Segments for Banking Services

Highlights the significance of market segmentation, preferring either to try to be all things to all people, or in other cases, attempting to sell to so‐called ‘market segments’, which are based on definitions of product or service. Posits that market segments should fit three criteria: be measurable; be accessible; be substantial. Further states that UK banks have been guilty of following a similar approach to making only one product rather than problem solving, and that banks operate in five businesses: cash accessibility; asset security; money transfer; deferred payment; and financial advice. These terms identify needs from the customer's point of view. Uses figures and tables to explore further the points mentioned and explain the thought behind these. Maintains in conclusion that a more ‘market’ or ‘customer’ oriented approach by a banking company can yield benefits to the organisation and also to the customer.