SOCIAL ECONOMIC CLASSIFICATION - A EFFECTIVE MARKETING TOOL. (SEC) SOCIAL ECONOMIC CLASSIFICATION WITH RELATED TO HOUSE HOLD POTENTIAL INDEX (HPI).

1. SOCIO ECONOMIC
CLASSIFICATION

2. Older SEC Technique
• It is based on two parameters
• Occupation( 7 types)
• Education of the chief earner (12 types)

3. Classitionfication of table
• A1,A2 WHITE COLLAR JOBS
• B1,B2 SSC QUALIFIED JOBS
• C,D CLIMBERS(SKILLED JOBS)
• E1,E2 UNSKILLED LABOUR.

4. Three things about new sec
• what is socio-economic classification ?
•Why is it being changed?
•How sec will be measured now?

5. Socio economic classification
• It is the way of segmenting consumers based
on their purchasing power.
• It is surveyed on 2,56,000 house holds responses
of their buying behaviour.

6. Why is it being changed?
•Indian consumer profile dramatically
changed over the years.
• Besides marketers need a better way to
finely segment upper end customers.

7. How sec will be measured now?
• Households will now be grouped into 12
classess based on two factors
1.the education of chief wage of the earner
2.No of consumer durable

8. Consumer durables

9. Education of the chief earner

10. How it will help in marketing?
• Marketers need to plan their media expenses.
• So they will get an idea what customer already
have, and what they willing to buy.
• It mainly uses to predict the purchasing power.

11. Draw back of sec
• Socio Economic Classification (SEC) lack in
discriminating the truly potential households
and audience.
• SEC is an indicator or a pointer towards the
“likely to consume” but often defies the reality
of not pointing clearly towards the “consuming
class”.

12. What is HPI?
• HPI allocates high scores for less penetrated
product categories and services. On the other
hand, lower scores to higher penetrated
categories or mass consumed categories.
• HPI eliminates judgmental factors and is
therefore a more systematic approach, across all
segments of households, from the “super
affluent”.

13. Factors taken in it
• HPI also takes these factors
1. demographics,
2. Highest Education in the household,
3. Number of working members,
4. education of the housewife.

14. How they categorise urban vs rural?
• UPPER most segment crorepathis
(who also spend and consumer)
• MIDDLE segment core target for growth of
very many categories
• The LOWER most segment, “volume
generator” for many FMCG categories and lower
end durables and services

16. By
HARI KRISHNAN N