In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999). The purpose if this paper is to define the market segmentation for digital camera. Especially focus on Nikon digital camera which is the chosen product in this paper.Digital camera is defined as digitally records images via electronic image sensor. Difference from film camera that digital camera has the display function on a screen after the image recorded. In addition, digital camera store and delete images on a single small memory device (SD card). According to Global Industry Analysts, the digital camera industry is projected to surpass 138 million units by the year 2015 (Jose, 2011). As the Global Industry Analysts report point out that the digital camera market had been divided by three main companies namely as Nikon, Canon, and Sony. Nikonhadthe sales of 2.15 million units in the first half of 2005. Next up is Canon, with sales of 2 million units and the third is Sony with 1.78 million digital cameras sold. Today, the digital camera marketers had put their effort on expanding China and India market with the large population and urgent demand for 3C product (Global Industry Analysts, 2011). As the economy stable, people are more likely to purchase 3C products such as digital camera. The paper will used the concept of means-end chain to analysis the potential links between products attributes, product benefits and the personal value of consumers. Then it goes to the next stage where the diagram will be given to explain the market segmentation and select the target segmentation. The last stage is to analysis the external characteristics of target segment. After these three stages, the recommendation will be given to stimuli the target segment.
2.0. Consumer Analysis
2.1.0. Means- end chain
In order to understand the consumer behaviour to digital camera, the mean-end chain will be used to discuss the potential links between product attributes, product benefits and personal values. Gutman described the interface between culture and consumer behaviour as a mean-end chain. The means are the vehicle of for attaining personal values with the consumption goals as an intermediary between them (Schiffman et al., 2011). Basically, mean-end chain is a knowledge structure that links consumers’ knowledge about product attributes with their knowledge about consequences and values (Peter & Olson, 1999). The following table is the means-end chain for Nikon digital camera. As the Global Industry Analysts report mentioned that Nikon has became the market leader among the digital camera market. The graph showed the relation links between attributes, benefits and values of consumers and how it influenced consumer motivation. As the graph shows that consumers will go through three steps when their decided to purchase a goods. Graph 1: Means-end chain for Nikon digital camera
Level of AbstractionExamplesExplanations
Personal valuesSelf-esteemPreferred end states of being and preferred modes of behaviour ↑
Psychosocial consequencePeople notice me,
Attraction, communicationPsychological (how I feel?) and social (how other feel?) consequences of product use. ↑
User-friendlyTangible consequences of product use. (What function is performed?) ↑
Product AttributesAffordable price,
Good QualityPhysical characteristics of product....