Rim's Porter Five Force Analysis

In: Computers and Technology

Submitted By vpan
Words 1644
Pages 7
Market Segmentation * Introduced by Smith (1956) * Heterogeneous group of customers can be grouped into homogeneous clusters each requiring different marketing mix to meet their wants and needs. * Is to bridge the gap between diverse customer needs and limited company resources, by encouraging distinct marketing offerings to be developed to suit the requirements of different customer segments
Segmentation Assumptions: * Consumers differ from one another in some respect which could be used to divide the total market into homogeneous groups * Selected segments can be isolated from the remainder of the market to enable targeting with a distinct market offering
Segmentation can be performed by answering the following questions: * Where? (Geographic) * Who? (Demographic) * Why? (Psychographic) * How? (Behavioural)
Geographic Segmentation is based on: * Continents * Countries * Regions or cities * Counties, provinces or states * Neighbourhoods
Example: McDonalds Aloo Tikki and Chicken Maharaja Mac
Geographic segmentation is useful because it: * Provides a quick overview of differences and similarities between consumers based on the geographical location * Can identify cultural differences between geographical units * Takes into consideration the climatic differences between geographical units * Recognizes language differences between geographical units
Demographic Segmentation is based on: * Age * Life cycle stage (baby boomer, Gen X, Gen Y, Married, Bachelor and etc) * Income (socio-economic) * Social class (socio-economic)
Example: Lego Toys
Geo-Demographic Segmentation
CACI market analysis group developed ACORN (a classification of residential neighbourhoods), that uses 40 variables to identify. For example: which consumers within a specific neighbourhood earn and buy.…...

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