Formulating a Market Segmentation Plan for a Company in the Software Industry
Loya Ramos, Daniela Denisse (2018)
Loya Ramos, Daniela Denisse
2018
Industrial Engineering and Management
Talouden ja rakentamisen tiedekunta - Faculty of Business and Built Environment
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Hyväksymispäivämäärä
2018-11-07
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-201810242464
https://urn.fi/URN:NBN:fi:tty-201810242464
Tiivistelmä
In today’s business environment, it is very appealing for companies in both the consumer and the business markets to forgo a defined segmentation strategy, relying on the ease of access to market to large and heterogeneous groups of customers. However, very few companies possess the resources to successfully target such a large group of customers, and it is highly unlikely that a firm with a single general marketing strategy would succeed to address all these diverse customers. While research in the market segmentation field is abundant, very few applications of different segmentation strategies are to be found in published literature.
The objective of this thesis is to develop a market segmentation model to identify valuable market segmentation variables that can be used to formulate a market segmentation strategy for a firm in the internet software industry. By applying the developed approach, the aim is to obtain a set of identifiable and differentiated market segments which have sales potential for the firm.
This study employs an explorative and qualitative approach to marketing research. The literature review section covers different topics related to market segmentation which were used to create a research framework. The nested approach to industrial market segmentation served as a guideline to identify market segmentation variables that were used for a firm in the technology industry to identify market segments with sales potential. The study was conducted by arranging this model based on the needs of the case company and their knowledge of the market. By analysing internal customer data, relevant segmentation variables were selected and applied to define different market segments, which were later analysed by calculating an average potential attractiveness. This resulted in a list of 22 market segments which the firm should put their marketing efforts on. This study contributes to market segmentation literature by addressing the gap between market segmentation research and practical applications of segmentation models in business markets.
The objective of this thesis is to develop a market segmentation model to identify valuable market segmentation variables that can be used to formulate a market segmentation strategy for a firm in the internet software industry. By applying the developed approach, the aim is to obtain a set of identifiable and differentiated market segments which have sales potential for the firm.
This study employs an explorative and qualitative approach to marketing research. The literature review section covers different topics related to market segmentation which were used to create a research framework. The nested approach to industrial market segmentation served as a guideline to identify market segmentation variables that were used for a firm in the technology industry to identify market segments with sales potential. The study was conducted by arranging this model based on the needs of the case company and their knowledge of the market. By analysing internal customer data, relevant segmentation variables were selected and applied to define different market segments, which were later analysed by calculating an average potential attractiveness. This resulted in a list of 22 market segments which the firm should put their marketing efforts on. This study contributes to market segmentation literature by addressing the gap between market segmentation research and practical applications of segmentation models in business markets.