Consumer Behaviour Report: Canon

815 Words Sep 12th, 2012 4 Pages
Consumer Behavior Report

Jeanette Thong Su-Xian
FT DipCom LM/MM 4
Mahum Jafer
4th June 2012 Situational Analysis

Canon 's strategies have been very effective in balancing growth of market share with profitability, with the firm controlling a significant share of focused niche markets in the imaging industry. Canon 's strategic challenges involved identifying the markets in which it intended to compete and developing competitive advantages to allow the firm to balance market share and profitability growth within these markets. In the late 1960s, the firm initially adopted a business-level strategic vision of focusing on the small photocopier niche that was underserved by its
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In effect, Canon would be in the position of a new market entrant with existing firms controlling the market.

Segmentation Methods

Today, segmentation is a crucial marketing strategy for nearly all successful organizations. Market segmentation is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. The target market of Canon 's photography products can be divided into two major segments; Demographic segmentation & Psychographic segmentation.

The core of most almost all segmentation is demographics, this due to the following reasons: demographics are the easiest and most logical way to classify people and can be measured more precisely than the other segmentation bases; demographics offer the most cost effective way to locate and reach specific segments because most of the secondary data compiled about any population is based on demographics; and many consumption behaviours, attitudes, and media exposure patterns are directly related to demographics. Individuals and families using photography to illustrate and capture their important moments are grouped under demographic segmentation; it uses the common bases to age, gender, income, ethnic background, and family life cycle.

On the other hand, professional photographers and highly-skilled amateurs are grouped under Psychographic segmentation. This is because its basis follows the following variables: personality, motives, lifestyles
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