This document discusses cluster analysis, which is a method of grouping objects together based on their similarities. It can be used to segment customer markets by clustering individuals with similar characteristics. In marketing, cluster analysis identifies homogeneous groups within a population to help define new or modify existing market segments and inform marketing strategy. The benefits of cluster analysis include identifying patterns in data, distinguishing structures, and enabling informed decision-making. Psychographic segmentation divides potential consumers according to non-demographic factors like interests, personalities, and lifestyles.

1. CLUSTER ANALYSIS

2. OUTLINE
1. WHAT IS CLUSTER ANALYSIS?
2. CLUSTER ANALYSIS IN CONTEXT
3. CLUSTER ANALYSIS IN MARKETING
4. PSYCHOGRAPHIC SEGMENTATION
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3. CLUSTER ANALYSIS
• Cluster analysis or clustering is the task of
grouping a set of objects in such a way that
objects in the same group are more similar to
each other than to those in other groups.
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Wikipedia

4. Cluster in context
• Group of friends sitting at the same
table in a restaurant
• In grocery stores, goods of a similar
nature are grouped
• Primates, mammals, amniotes,
vertebrates, and animals
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• Group similar objects into respective
categories
• Segmentation analysis, taxonomy
analysis, or clustering.
• Objects that are similar and dissimilar
to each other
• Classify objects into relatively
homogeneous groups

6. • Powerful Data-mining Tool
• Market Segments In Marketing.
• Goal Of Performing A Cluster Analysis
• Cluster Analysis Differs From Many
Other Statistical Methods
• Research Tool Used To Help You
Segment
• Insight Into The Market Segmentation
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7. Example to Understand
• Optimising Google AdWords for business
• Maharashtra
• homogeneous clusters; the more and the
less profitable one
Variables: Number of paid clicks
Number of conversions per click (CPC)
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8. In Marketing
• Specific groups can be identified
within a population
• Market segmentation
• Insurance
• New Market Segments and/or
Modify Old Ones
• Input into marketing strategy
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9. The Benefits of Cluster Analysis
• Identify and define patterns between data
elements.
• Helps to distinguish and outline structures
• Informed decision-making
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10. Psychographic Segmentation
• Divides potential consumers based on their
interests, personalities, lifestyles, activities,
• Psychographic segmentation examples
• Lifestyle based segmentation-walmart
• Personality based segmentation-harley davidson
bikes
• Social class based segmentation-gucci
• Attitude based segmentation
• Marital status based segmentation
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11. You Tube Video
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https://youtu.be/lxSKHBsRNNQ