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Consumer Reserch & Market Segmentation


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Consumer Reserch & Market Segmentation

  1. 1. CONSUMER RESEARCH & MARKET SEGMENTATION Presented By Amogh Kadam Dhanesh Gundla Prathamesh Parab
  2. 2.  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
  3. 3. Consumer Research Methods Methods of consumer research  Primary research methods  Advantages and disadvantages of each method 
  4. 4. Two Research Methods Secondary: use of existing research already done ◦ Government ◦ Consulting firms ◦ Newspaper and magazine articles  Primary: creation of specific studies to answer specific questions 
  5. 5. Primary Research Methods  Surveys  Experimentation  Focus groups  In-depth interviews  Projective techniques  Physiological Measures
  6. 6. Planned questions ◦ Open-ended ◦ Closed-ended  Sample size and inferences  Surveys  Forms ◦ Mail ◦ Telephone ◦ Mall Intercept ◦ Computer/Internet  Biases ◦ Wording ◦ Response ◦ Interviewer
  7. 7. Computer/Online surveys Getting people to follow instructions  Opportunities for branching (contingent questions)  Sampling frame and response  Possible emerging opportunities  Correlating data on which not all respondents have answered the same questions 
  8. 8. Experimentation  Real world relevance vs. control (internal vs. external validity)  “Treatments” and factorial designs  Sample sizes and inferences
  9. 9. Focus Groups  Groups of 8-12 consumers assembled  Start out talking generally about context of product  Gradually focus in on actual product
  10. 10. In-depth Interviews  Structured vs. unstructured interviews  Generalizing to other consumers  Biases
  11. 11. Projective Techniques  Measurement of attitudes consumers are unwilling to express  Consumer discusses what other consumer might think, feel, or do
  12. 12. 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
  13. 13. Six steps  Defining the objectives of the research collecting and evaluating secondary data designing a primary research study collecting primary data analyzing the data preparing a report on the findings The Consumer Research Process
  14. 14. Descriptive in nature.  Enables marketers to “predict” consumer behavior.  Research methods include experiments, survey techniques, and observation.  Findings are descriptive, empirical and generalizable.  Quantitative Research
  15. 15. 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.  Qualitative Research
  16. 16. 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
  17. 17. Definition  Market Segmentation: ◦ Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. 717 Goal 2: Understand the major bases for segmentation
  18. 18. What is Market Segmentation? The breaking down or building up of potential buyers into groups called Market Segments 4-18
  19. 19. Benefits of Market Segmentation 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 419
  20. 20. LEVELS OF MARKET SEGMENTATION Mass Marketing Same product to all consumers (no segmentation) Segment Marketing Different products to one or more segments (some segmentation) Niche Marketing Different products to subgroups within segments ( more segmentation) Micromarketing Products to suit the tastes of individuals or locations (complete segmentation) 1020
  21. 21. SEGMENTATION-PRODUCT EXAMPLES SEGMENT MARKETING: Example: Automobile industry – basic model is same but for A.C , power steering, power window buyer has to extra price NICHE 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 & spiritualism LOCAL 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 Paints Arvind mills launched Ruff’n Tuff Jeans, branded ready to sitch
  23. 23. The Classic Segmentation Variables for Consumer Markets & Customer Population Geographic Nations, states, regions or cities Demographic Age, gender, family size and life cycle, income Psychographi cSocial class, lifestyle, or personality Behavioral Occasions, benefits, uses, or responses 1023
  24. 24. SEGMENTATION-PRODUCT EXAMPLES  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)
  25. 25. SEGMENTATION-PRODUCT EXAMPLES  PSYCHOGRAPHIC:  Lifestyle groups Yuppie Associations  Mobile, 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 loyalloyal to 2-3 brand ,shifting loyal, switcher
  26. 26. SEGMENTATION-PRODUCT EXAMPLES DemographicAGE Gender Psychographics OccasionBehavioral LOCAL