Segmentation - Market Structure
Most competitive markets are not segmented at the brand level. Buyers of Colgate toothpaste do not differ from buyers of Macleans toothpaste. The same applies to banks, insurance companies, cars - you name it. By 'competitive market' we mean a group of brands that compete directly. So a Rolls Royce is not in the same competitive market as a Commodore.
Given that most markets are not segmented, it still may be possible that there are some groups of brands that compete more closely with each other - and less closely with certain other brands. Knowing this structure of competition can be very useful for marketing managers. It identifies that certain brands must have some functional differences with common appeal. What exactly is it? Why do they compete less closely with those other brands? The results may tell you that it is more important to monitor the activities of competitors A and B and worry a bit less about C and D. Let us help you to identify the competitive structure of your market.
Please email Elke.Seretis@MarketingScience.info for further information on any aspect of Market Structure.