+Forbes India talks about the new SEC tool to help marketers segment the consumers in a smarter way. Basically since the mid-80s, Indian marketers and media planners had relied on a socio-economic classification (SEC) system as an important aid in helping them decide on marketing strategy and budget allocations.
In simple terms it is a way of segmenting consumers based on their purchasing power by collecting data on media habits and buying behavior of over 200K households through a survey. In the old SEC system, each household was placed in one of the eight classifications based on the education and occupation of head of household. With dramatic change in Indian socio-economic demographics over past few decades, old SEC system is being replaced with new system. As per the new system, each household will now be placed in one of the twelve classes.
The twelve classes in new SEC system are education of head of household and ownership of eleven consumer durables such as electricity, air conditioner, cellphones, washing machine, color TV, refrigerator, etc. Some marketers believe these are good enough parameters to measure people’s consumption behavior.
However, I have my doubts how closely this new SEC system will reflect pan-India purchasing power. It will, as +Forbes admits, help marketers to discriminate amongst upper end buyers. As per March 2012 figures released by the Planning Commission, India’s official poverty rate stands at 29.8%, or close to 350 million people using 2010 population figures, down from around 37.2% or 400 million previously. While some analysts have alleged that Government of India may be fudging these numbers to make the situation look better.
Irrespectively, looking at the new SEC system such poor households will most probably fall out of this survey on most of the classifications. Unless a BPL family is living in +Narendra Modi's Gujarat where 24x7 electricity is a reality, I doubt similar poor homes in other states can even dream of regular food on the table, let alone owning a color TV and getting uninterrupted power to run it. But then may be that is why SEC system seems to be restricted to upper end consumers only.
Sources:
http://planningcommission.nic.in/news/press_pov1903.pdf
http://www.thehindu.com/news/national/article3013870.ece
http://blogs.wsj.com/indiarealtime/2012/03/20/is-india-fudging-its-poverty-numbers/
http://www.globalpost.com/dispatches/globalpost-blogs/india/india-lies-poverty
Forbes India Magazine - New SEC Tool to Help Marketers
Thanks to a new improved tool, marketers now have a smarter way to segment consumers. But will it really make a difference?
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In simple terms it is a way of segmenting consumers based on their purchasing power by collecting data on media habits and buying behavior of over 200K households through a survey. In the old SEC system, each household was placed in one of the eight classifications based on the education and occupation of head of household. With dramatic change in Indian socio-economic demographics over past few decades, old SEC system is being replaced with new system. As per the new system, each household will now be placed in one of the twelve classes.
The twelve classes in new SEC system are education of head of household and ownership of eleven consumer durables such as electricity, air conditioner, cellphones, washing machine, color TV, refrigerator, etc. Some marketers believe these are good enough parameters to measure people’s consumption behavior.
However, I have my doubts how closely this new SEC system will reflect pan-India purchasing power. It will, as +Forbes admits, help marketers to discriminate amongst upper end buyers. As per March 2012 figures released by the Planning Commission, India’s official poverty rate stands at 29.8%, or close to 350 million people using 2010 population figures, down from around 37.2% or 400 million previously. While some analysts have alleged that Government of India may be fudging these numbers to make the situation look better.
Irrespectively, looking at the new SEC system such poor households will most probably fall out of this survey on most of the classifications. Unless a BPL family is living in +Narendra Modi's Gujarat where 24x7 electricity is a reality, I doubt similar poor homes in other states can even dream of regular food on the table, let alone owning a color TV and getting uninterrupted power to run it. But then may be that is why SEC system seems to be restricted to upper end consumers only.
Sources:
http://planningcommission.nic.in/news/press_pov1903.pdf
http://www.thehindu.com/news/national/article3013870.ece
http://blogs.wsj.com/indiarealtime/2012/03/20/is-india-fudging-its-poverty-numbers/
http://www.globalpost.com/dispatches/globalpost-blogs/india/india-lies-poverty
Forbes India Magazine - New SEC Tool to Help Marketers
Thanks to a new improved tool, marketers now have a smarter way to segment consumers. But will it really make a difference?
0 0 Powered by socialditto Forbes India talks about the new SEC tool to help marketers segment the consumers in a smarter way. Basically since the mid-80s, Indian marketers and media planners had relied on a socio-economic classification (SEC) system as an important aid in helping them decide on marketing strategy and budget allocations.
In simple terms it is a way of segmenting consumers based on their purchasing power by collecting data on media habits and buying behavior of over 200K households through a survey. In the old SEC system, each household was placed in one of the eight classifications based on the education and occupation of head of household. With dramatic change in Indian socio-economic demographics over past few decades, old SEC system is being replaced with new system. As per the new system, each household will now be placed in one of the twelve classes.
The twelve classes in new SEC system are education of head of household and ownership of eleven consumer durables such as electricity, air conditioner, cellphones, washing machine, color TV, refrigerator, etc. Some marketers believe these are good enough parameters to measure people’s consumption behavior.
However, I have my doubts how closely this new SEC system will reflect pan-India purchasing power. It will, as Forbes admits, help marketers to discriminate amongst upper end buyers. As per March 2012 figures released by the Planning Commission, India’s official poverty rate stands at 29.8%, or close to 350 million people using 2010 population figures, down from around 37.2% or 400 million previously. While some analysts have alleged that Government of India may be fudging these numbers to make the situation look better.
Irrespectively, looking at the new SEC system such poor households will most probably fall out of this survey on most of the classifications. Unless a BPL family is living in Narendra Modi's Gujarat where 24x7 electricity is a reality, I doubt similar poor homes in other states can even dream of regular food on the table, let alone owning a color TV and getting uninterrupted power to run it. But then may be that is why SEC system seems to be restricted to upper end consumers only.
Sources:
http://planningcommission.nic.in/news/press_pov1903.pdf
http://www.thehindu.com/news/national/article3013870.ece
http://blogs.wsj.com/indiarealtime/2012/03/20/is-india-fudging-its-poverty-numbers/
http://www.globalpost.com/dispatches/globalpost-blogs/india/india-lies-poverty
Power: Better Late than Never - Forbes
Thanks to a new improved tool, marketers now have a smarter way to segment consumers. But will it really make a difference?Powered by socialditto
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In simple terms it is a way of segmenting consumers based on their purchasing power by collecting data on media habits and buying behavior of over 200K households through a survey. In the old SEC system, each household was placed in one of the eight classifications based on the education and occupation of head of household. With dramatic change in Indian socio-economic demographics over past few decades, old SEC system is being replaced with new system. As per the new system, each household will now be placed in one of the twelve classes.
The twelve classes in new SEC system are education of head of household and ownership of eleven consumer durables such as electricity, air conditioner, cellphones, washing machine, color TV, refrigerator, etc. Some marketers believe these are good enough parameters to measure people’s consumption behavior.
However, I have my doubts how closely this new SEC system will reflect pan-India purchasing power. It will, as Forbes admits, help marketers to discriminate amongst upper end buyers. As per March 2012 figures released by the Planning Commission, India’s official poverty rate stands at 29.8%, or close to 350 million people using 2010 population figures, down from around 37.2% or 400 million previously. While some analysts have alleged that Government of India may be fudging these numbers to make the situation look better.
Irrespectively, looking at the new SEC system such poor households will most probably fall out of this survey on most of the classifications. Unless a BPL family is living in Narendra Modi's Gujarat where 24x7 electricity is a reality, I doubt similar poor homes in other states can even dream of regular food on the table, let alone owning a color TV and getting uninterrupted power to run it. But then may be that is why SEC system seems to be restricted to upper end consumers only.
Sources:
http://planningcommission.nic.in/news/press_pov1903.pdf
http://www.thehindu.com/news/national/article3013870.ece
http://blogs.wsj.com/indiarealtime/2012/03/20/is-india-fudging-its-poverty-numbers/
http://www.globalpost.com/dispatches/globalpost-blogs/india/india-lies-poverty
Power: Better Late than Never - ForbesThanks to a new improved tool, marketers now have a smarter way to segment consumers. But will it really make a difference?
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