A Study Segmentation Targeting and Positioning and Positioning Strategies for Smartphone Marketing with Reference to Samsung and Apple

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Smartphone’s Customer Segmentation and Targeting:
Defining market segment for different type of mobile service providers

Date: Author: Student Nr: Course:

February 2012 Fadly Hamka 4073304 MOT2910 – Msc Thesis Project

Graduation Committee Chairman: Prof. Yao-Hua Tan (Delft University of Technology) Prof. Dr. W.A.G.A (Harry) Bouwman (Delft University of Technology) st 1 supervisor: Dr. Ir. G.A. (Mark) de Reuver (Delft University of Technology) 2nd supervisor: Dr. Ir. M. Kroesen (Delft University of Technology) Program: Section: Management of Technology (MOT) Information and Communication Technology (ICT)

Faculty of Technology, Policy and Management, Delft University of Technology

Smartphone’s Customer Segmentation and Targeting: Defining market segment for different type of mobile service providers Page

Abstract
In recent years, mobile service usage increase rapidly following the emerging use of smartphone technology by the mobile users. The increase use of mobile service poses challenge for actors in mobile ecosystem to constantly meet the dynamic change of needs and requirement of mobile users. Through market segmentation, actors such as network operator, handset manufacturer, and application provider are able to distinguish behavior usage or preferences on mobile services for each market segment and use this information to design or offer specific product that meet the behavior or preferences of the user in each market segment. This paper explores the use of market segmentation on the perspective of actors in mobile ecosystem which are network operator, handset manufacturer and application provider. Furthermore, this paper also explores the interaction that may exist between each actor by analyzing the relation between the resulted segments of each perspective. Our findings show that the resulted market segment can be identified based on their level of voice, SMS and data usage and also based on their application usage behavior. Related to interaction among actor, by correlating the resulted segment of each perspective, we find that handset manufacturer can easily cooperate with both network operator and application provider in designing or offering product and services to each market segment, while the cooperation between network operator and application provider may be quite complex. We also note that incorporating demographic and psychographic for profiling the market segment based on behavioral usage provide additional insight for each actor to perceive their target users and respectively type of marketing strategy and product usage to be offered. Keywords: Network Operator, Application Provider, Handset Manufacturer, Mobile Service, Market Segmentation, Target Segment, Latent Class Analysis

Smartphone’s Customer Segmentation and Targeting: Defining market segment for different type of mobile service providers Page i

Acknowledgement
This report forms the thesis of my graduation research project that is conducted in partial fulfillment of the requirements for the Master of Science degree in Management of Technology (MOT). I have learned a lot from this study and it has encouraged me to cheer up and work harder in the future. I owe a debt of gratitude to all those who have directly and indirectly contributed in different manners to this thesis project and I would like to thank and acknowledge a number of people. First of all, I would like to thank my chairman, Prof. Dr. Harry Bouwman, thank you for providing me an opportunity to conduct my research on one of your project. It has been a great experience and knowledge for me. Your tough comments and remarks and input to me have been truly an encouragement for me to be more diligent, work hard and achieve my goals. Also the moments in the ICT section during your teachings gave me meaningful experiences and broaden my knowledge. Secondly, I would like to express my great gratitude to my first supervisor, Dr. Ir. Mark de Reuver, thank you for...
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