MARKET SEGMENTATION ANALYSES:
Market segmentation analyses:
1. Macro environment: STEEP Analysis (Sociocultural & Demographic, Technology, Economic, Ecology &
Physical, Political & Legal)
Macro-environmental planning tool to assess:
o Sociocultural and demographic factors: values, lifestyles, demographics, etc.
o Technological factors: product innovation/ improvement, delivery, etc.
o Economic factors: interest rates, inflation, employment, GDP, etc.
o Ecology and physical environmental factors: climate, fuel costs, etc.
o Political and legal factors: policy, stability, taxes/ regulations, trade agreements, etc.
2. Micro/ Macro Environment: SWOT Analysis
Strengths (Internal organizational strengths): expertise, product efficiencies, superior product, etc.
Weaknesses (Internal organizational weaknesses): lack of expertise, location, inferior product, etc.
Opportunities (External market opportunities): developing market, alliances, weak competitor, etc.
Threats (external market threats): new/ strong competitor, change in regulation, etc.
3. Micro Environment: Porter’s 5 Forces
Industry Competitors: Net Entrants, Buyers, Subsitutes, Supplier
Threat of entry: relative strengths of barrier to entry.
Power of buyers: relative concentration, differentiation, propensity to switch.
Power of suppliers: relative fragmentation, brand power, propensity to switch.
Threats of substitutes: lack of real differentation, product-for-profit, generic.
4. Target Segment Analysis: STP
Market Segmentation: identity basis for segmenti