Product relevance as basis for market defragmentation and strategic decision making

Philip Bird and Jeroen Rietberg

Fragmentation of consumer markets is a generally accepted phenomenon. Market segmentation models based on demographic features or lifestyle have become so complex that their value in the strategic decision making process of larger companies has become questionable.

Product Relevance as a Basis for Market Defragmentation and Strategic Decision-making

Jeroen Rietberg2way Research, Netherlands

Philip BirdMSN Europe, United Kingdom

INTRODUCTION

For a number of years now, the fragmentation of markets has been a generally accepted phenomenon. In the not too distant past traditional institutions like the church or politics would, to a certain extent, drive behavioural patterns which made predictability on the basis of socio-demographic factors possible. In today's market the influence of these institutions has disappeared. Combined with a consumer shift towards individualism, higher awareness and independence, market segmentation on the basis of socio-demographic factors or...

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