consumer reserch & market segmentation
TRANSCRIPT
CONSUMER RESEARCH & MARKET SEGMENTATION
Presented ByAmogh Kadam
Dhanesh GundlaPrathamesh Parab
Consumer Research
Most studies on consumer behavior are based on a set of beliefs and assumption called positivism or modernism. Researchers who support the assumptions of modernism are referred to the positivists .
Positivists research method consist of experiment , survey techniques & observation.
Consumer Research Methods
Methods of consumer research
Primary research methods
Advantages and disadvantages of each method
Two Research MethodsSecondary: use of existing
research already done◦Government◦Consulting firms◦Newspaper and magazine
articlesPrimary: creation of specific
studies to answer specific questions
Primary Research Methods
SurveysExperimentationFocus groupsIn-depth interviewsProjective
techniquesPhysiological
Measures
Surveys
Planned questions◦Open-ended◦Closed-ended
Sample size and inferences
Forms◦Mail◦Telephone◦Mall Intercept◦Computer/Internet
Biases◦Wording◦Response◦Interviewer
Computer/Online surveys
Getting people to follow instructions
Opportunities for branching (contingent questions)
Sampling frame and responsePossible emerging
opportunitiesCorrelating data on which not
all respondents have answered the same questions
Experimentation
Real world relevance vs. control (internal vs. external validity)
“Treatments” and factorial designs
Sample sizes and inferences
Focus Groups
Groups of 8-12 consumers assembled
Start out talking generally about context of product
Gradually focus in on actual product
In-depth Interviews
Structured vs. unstructured interviews
Generalizing to other consumers
Biases
Projective Techniques
Measurement of attitudes consumers are unwilling to express
Consumer discusses what other consumer might think, feel, or do
Observation
Consumer is observed--preferably unobtrusively--while:◦Examining products prior to
making a purchase ◦Using a product◦Engaging in behavior where
the product may be useful
The Consumer Research Process
Six steps Defining the objectives of the research
collecting and evaluating secondary datadesigning a primary research studycollecting primary dataanalyzing the datapreparing a report on the findings
Quantitative Research
Descriptive in nature.Enables marketers to “predict”
consumer behavior.Research methods include experiments,
survey techniques, and observation.Findings are descriptive, empirical and
generalizable.
Qualitative Research
Consists of depth interviews, focus groups, metaphor analysis, collage research, and projective techniques.
Administered by highly trained interviewer-analysts.
Findings tend to be subjective.Small sample sizes.
MARKET
Market is a physical place where buyers & sellers gathered to buy and sell goods. Or Collection of buyers and sellers who transact over a particular product. E.g 1. Consumer Market- Soft Drinks, cosmetics, air travel 2. Business Markets- Infosys, Huwai, BPO’s 3. Global markets- Import & Export companies, MNC;s 4. Nonprofit & Govt Markets-Temples, Universities, govt companies
DefinitionMarket Segmentation:
◦Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
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Goal 2: Understand the major bases for segmentation
What is Market Segmentation?
The breaking down or building up
of potential buyers into groups
called
Market Segments
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Benefits of Market Segmentation
4-19
1. Identifies opportunities for new product development
2. Helps design marketing programs most effective for reaching homogenous groups of buyers
3. Improves allocation of marketing resources
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Mass MarketingSame product to all consumers
(no segmentation)
Mass MarketingSame product to all consumers
(no segmentation)
Segment MarketingDifferent products to one or more segments
(some segmentation)
Segment MarketingDifferent products to one or more segments
(some segmentation)
MicromarketingProducts to suit the tastes of individuals or locations
(complete segmentation)
MicromarketingProducts to suit the tastes of individuals or locations
(complete segmentation)
Niche MarketingDifferent products to subgroups within segments
( more segmentation)
Niche MarketingDifferent products to subgroups within segments
( more segmentation)
LEVELS OF MARKET SEGMENTATION
SEGMENTATION-PRODUCT EXAMPLESSEGMENT MARKETING:Example: Automobile industry – basic model is same but for A.C , power steering, power window buyer has to extra priceNICHE MARKETING :- Group of customers seeking a distinctive mix of benefits who are ready to pay extra premium. Egs :- detergents :- surf excel on tough stains ,Ezee godrej for delicate clothes . Sanskar ,Shankara T.V ,TTD(Tiruapti tirumala Devasthanam) – focus on religion & spiritualismLOCAL MARKETING:Ex. – Spiderman 3 was released in 5 different language in India including bhojpuri.INDIVISUAL MARKETING:Ex. Paint companies have started doing this- Asian Paint , Nerolac , Berger PaintsArvind mills launched Ruff’n Tuff Jeans, branded ready to sitch
SEGMENTATION-PRODUCT EXAMPLES
HYNDAI EON-SEGMENT
ROLLS ROYCE-INCOME NICH-HIMALAYA
LOCAL
NICH-SPORTS CHANNEL
LOCAL
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Geographic
DemographicAge, gender, family size and life cycle, income
PsychographicSocial class, lifestyle, or personality
BehavioralOccasions, benefits, uses, or responses
Nations, states, regions or cities
The Classic Segmentation Variables for Consumer Markets & Customer
Population
GEOGRAPHICAL SEGMENTATION: Ex.- Mcdonalds globally, sell burgers aimed at local markets, for example, burgers are made from lamb in India rather then beef
because of religious issues. DEMOGRAPHIC SEGEMENTATION: Needs and wants change as people ages . Egs :- Nappies for babies,
Toys for children , Clothes for teenagers, Gender segmentation is used within the cosmetics, clothing and magazine industry.
INCOME SEGMENTATION: Stores like Big Bazar, Woodland are predominantly aimed at the
affluent market. TATA aim their vehicles at price sensitive buyers who require a bundle
of benefits for the price. Products and services are also aimed at different lifecycle. Holidays are developed for families, the 18-30's singles, and for those
in their 50's. (Kesari Or Mahindra Club)
SEGMENTATION-PRODUCT EXAMPLES
PSYCHOGRAPHIC:Lifestyle groups Yuppie AssociationsMobile, High valued house/flat, Good Salary, Young
branded car.50's , Retired early from profession, Time to spare,
Adventure Seekers
OCCASIONS - Archies and Hallmark, cards, Monaco at tea time.
BENEFITS – Shampoo for hair conditioning, cleaning , hair fall defence dandruff control
USER STATUS- light – medium – heavy user LOYALTY STATUS- hardcore loyal , split loyal-
loyal to 2-3 brand ,shifting loyal, switcher
SEGMENTATION-PRODUCT EXAMPLES
SEGMENTATION-PRODUCT EXAMPLES
Demographic-AGE Gender
PsychographicsOccasion- Behavioral
LOCAL