Conglomerate Inc.'s New PDA Case (Segmentation-Targeting)
Results and Findings
Run Segmentation from the Segmentation and Classification tool in ME>XL (without Discrimination) on the date to try to identify the number of distinct segments present in this market. Consider both the distances separating the segments and the characteristics of the resulting segments.
After running the Segmentation analysis with standardized data from the Segmentation and Classification tool, it is clear that there are four distinct segments present in this market after taking the Error Sum of Squares (ESS) into consideration (see Dendogram in Exhibit 1 below). Cluster 1 is identified as the Sales Workforce. Cluster 2 would identify best with the Service Workforce. Cluster 3 would be broken into the Industrial Workforce. Lastly, Cluster 4 would be broken down into the Consulting Innovators.
Identify the profile (name) the clusters that you select. Given the attributes of ConneCtor, which clusters would you target for your marketing campaign?
After running the segmentation analysis of the information given for the ConneCtor 2001 PDA, we have identified four distinct segments to target.
The segmentation analysis gives us information on how to cluster the members. The clusters that we have chosen are as follows:
Sales Workforce- Cluster 1 is made up of primarily sales professionals. Members in this cluster indicated that they use their cell phones frequently and 45% are currently using a PDA. 54% of the cluster members indicated sales as their occupation. The large majority of this cluster has access to a PC. This cluster is involved in work that frequently takes them away from the office. 30% of this cluster read the magazine "Business Week." This cluster tends to be very price sensitive.
Service Workforce- Cluster 2 is made...