Khushal Khan Khattak University Karak

Submitted To: Sir Ishfaq

Submitted By: Hasnain Tariq
Department: IMS
Discipline: MS (HRM)
Subject: Strategic Marketing
Topic: Segmental Productivity Analysis
Dated: 9/12/2019
 Segmental Productivity Analysis:
In segmental productivity analysis the learning objective are,
Learning Objective

 Understand how cost Analysis can be applied to market segment.

 Appreciate role of marketing experimentation in improving the allocation of marketing
effort.
 Recognize the value of segmental productivity analysis.
 Critically perceive how ratio analysis can be used to understand the current position.
 Appreciate the relevance of strategic benching marking. How are resources utilized and
with what returns needs to be understood by company.
Example: Reformulation and Re-launch of product A? Continued market services B? Successful
development and launch of project or product C. Project and activities can be further defined in
terms of missions and mix of projects and mission will be constantly changing with resource
implementation and profit consequences. Which product is to add and which to delete? Establish
the cost of each activity.
The organization identify the costly customers through SPA which provides an opportunities to
the organization to modify its strategies for specific potential customer such as; Sales promotion
strategies, advertising strategies, distribution strategies and need and want identification.

Advantages:
 It’s a useful tools for measuring performances and expenditure.
 An accurate profit and loss account can tell us where you are losing money, where you
are making it, and how to improve performance.
 Analyze profitable customer.
 Administer each customer’s Cost-to-Serve.
 Suspend unprofitable Product, Services and customers.

Disadvantages:
 Implementing ABC is often very complex and time consuming.
 Customer profitability analysis has drawback over product profitability approach.