Analysis on Product Segmentation in Document Solutions

 Analysis on Product Segmentation in Document Solutions


Abstract

All marketing strategy is built on the Segmentation-Targeting-Positioning (STP) process. An STP procedure that simultaneously identifies consumer segments, derives a joint space of brand coordinates and segment-level ideal points, and establishes a link between specified product attributes and brand locations in the joint space is presented. Such policy simulations can be performed by brand, as well as positioning optimization and targeting. STP framework and optimal product positioning literature are briefly reviewed.

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Introduction

A thorough analysis of the competitive market structure is essential to the strategic market planning process (cf. Day 1984; Myers 1996; Wind and Robertson 1983). Competition between products/brands/services is the primary basis for competitive market structure analyses according to DeSarbo, Manrai, and Manrai (1994). (see also Fraser and Bradford 1984; Lattin and McAlister 1985). Positioning models that incorporate actual consumers' purchase behavior/intentions, background characteristics, marketing mix, etc. (cf.

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Conclusion

First, models in the product positioning literature have lacked behavioral assumptions. In order to account for perceived similarity, models are needed. DeSarbo and Manrai (1992) have used Krumhansl's density-distance model (1978), which, if extended to the clusterwise case, could be used to generate new brand positions and account for perceptual similarities between the brands in the marketplace. If a product's characteristics are a combination of discrete and continuous variables, procedures must be adapted or derived to create optimal products.

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