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Research on Regional Market Portfolio Based on City Units

Author: DuanXiaoZuo
Tutor: ShiQi；GuoLiXin
School: Nanjing University of Finance and Economics
Course: Regional Economics
Keywords: City-orientation Urban Agglomeration Regional Market Portfolio Home Appliances Markets
CLC: F426.6
Type: Master's thesis
Year: 2011
Downloads: 23
Quote: 0
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Abstract


With the acceleration of urbanization process, the level of urbanization rises, the number of cities grows; the scale of urban population, the income of urban residents and the household consumption increase, thus China’s urban consumer markets rise, which changes the sales market environment that the enterprises are facing.The change of macro environment causes the change of characteristics and behaviors of consumers, and then influence the enterprises’ markets. So it requires the enterprise to readjust its marketing strategy according to the change of market environment rapidly, which can make the enterprise marketing strategies suitable for the current market environment. And market segmentation as the important part of market strategies relates to the planning and execution of enterprise marketinng strategy, which is of great significance for enterprises. However, the macro environment has been regarded as enterprises’ uncontrolled factors, traditional methods of market segmentation often ignored market environment and the change of market conditions, and the reference is more onefold, which may make the traditional methods of market segmentation not apply to the current market environment.This paper proposes that the enterprise should fully analyze the change of market environments, and use market advantages that the change of market conditions brings to make market segmentation.In this context, this paper analyzes the current market features and characteristics of the development of China’s urbanization, so the enterprise should make full use of the advantages that the rise of urban consumption markets and urban agglomeration economy bring to divide the markets based on city units and make regional markets portfolio. Compared with the method based on the concept of administrative division,“Regional Market Portfolio Based on City Units”has many advantages, firstly it can make full use of advantages that market conditions changes brought to highlight the central market and lead to the development of whole market.Secondly, it can help enterprises to define strategic vision better, optimize the allocation of resources and track performance, which makes the sales work more careful. Thirdly, it can help to achieve synergy effects of sales team, distribution channel, and supply chain in more wide area, which has more effectivity and cost effectiveness.This paper uses the research results about city development and related theory of regional economics, urban economics, marketing, management science other multi-disciplinary subjects, in the way of literature methodology, combination of system analysis and deductive analysis and case analysis,which has five chapters.The first chapter presents the realistic background,theoretical background and the value of this new market segmentation method; The second chapter puts forward the new method of market segmentation named " Regional Market Portfolio Based on City Units" from the perspective of economics,and analyzes the theoretical foundation and realistic foundation;The third chapter gives the connotation and characteristics of this new method,the dimensions of analyzing city markets from the point of economics and the implementing procedures for regional market portfolio;In the fourth chapter it takes the Siemens home appliances consumer markets in Shandong province as example and tries to prove the propose of the new market division method in the practice ,after analyzing the urban markets characters of 17 cities in Shandong it uses the method to divide 17 urban markets into six market portfolios with its central city. Last it gives the main conclusions and further prospects on“Regional market portfolio based on city units”including research on functional module and performance evaluation on each regional market portfolio in the future.

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