Market Segmentation and Market Basket Analysis
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Market segmentation involves dividing customers into subgroups where members are similar in certain characteristics and behaviors. It is useful for developing targeted marketing strategies. Common segmentation bases include demographics, behaviors, and geographic location. Methods like k-means clustering and hierarchical clustering are used. Market basket analysis examines what products customers frequently purchase together to identify cross-selling opportunities. Association rule mining and similarity measures are analytical approaches used. It provides benefits like increased sales and customer satisfaction from tailored product offerings.
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Forecast future trends:
-it can also be used to anticipate future customer needs
Chapter 4 Principal Of Marketing.. .pptx
This document discusses managing marketing information. It defines marketing information and customer insights, and explains that a marketing information system collects data from internal and external sources to analyze customer behavior and needs. An example is provided of the Nike+ app, which tracks user data. The document also outlines the steps in effective marketing research, including identifying information needs, collecting and analyzing data, and using insights to inform strategies.
Our Capabilities_Market and Consumer Insights_CPG_V1.pptx
This document provides an overview of Netscribes' market research and analytics capabilities for CPG/FMCG clients. It outlines their solutions including tailored research, sales intelligence, competitive intelligence, sector reports, quantitative and qualitative research. It also describes their digital analytics solutions like social media insights, business intelligence dashboards, customer analytics and marketing analytics. The document shares profiles of some of Netscribes' global CPG clients and examples of projects conducted for them. It closes with contact information for Netscribes offices.
Marketing research methodology
The document provides an overview of marketing research, including its definition, purpose, types, uses, and methodology. Marketing research is defined as the systematic process of generating information to aid marketing decisions. Its purpose is to provide management with relevant and up-to-date market information. There are two main types: basic research which expands market knowledge, and applied research which addresses specific problems. Marketing research uses include identifying opportunities, analyzing markets and performance. The process involves defining problems, developing approaches, designing research, collecting and analyzing data, and reporting findings. Methods can be qualitative like focus groups or quantitative like surveys. Marketing research techniques help the marketing team with tasks like brand awareness testing, concept testing, and segmentation research.
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Segmentation
Dart builds sophisticated customer segmentation models using statistical techniques and intuition. The goal is to create distinct customer segments that are predictive of behavior and can be implemented for marketing purposes. Dart analyzes customer, transaction, and demographic data to develop segments. The segmentation process involves data preparation, analysis, model development, and validation of segments. Segments are then profiled and analyzed financially to optimize marketing strategies.
Segmentation
Dart builds sophisticated customer segmentation models using statistical techniques and intuition. The goal is to create distinct customer segments that are predictive of behavior and can be implemented for marketing purposes. Dart analyzes customer, transaction, and demographic data to develop segments. The segmentation process involves data preparation, analysis, model development, and finalizing the segments with descriptive profiles and financial analysis. Segments are monitored over time and recalibrated as needed to keep the segmentation strategy relevant.
YC MarketingPrinciples-- part 2--Diane Phelps
The document discusses developing marketing objectives and strategies, including creating customer profiles that describe target markets based on factors like demographics and purchasing habits. It also covers developing product strategies in terms of the product life cycle, branding, and differentiation from competitors. Finally, the document outlines developing pricing strategies such as price skimming to recoup costs or penetration pricing to quickly gain market share.
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Market Segmentation and Market Basket Analysis
- 1. Market Segmentation and Market Basket Analysis Swarup De, PhD Senior Technical Lead at Xoriant Ex - Analytical Consultant at SAS Post Doctoral Fellow in Statistics, Texas A&M University
- 2. Outline ● Market Segmentation ● Define Market Segmentation ● Discuss how segmentation is useful ● Segmentation Bases: Types of segmentation ● Discuss various methods of segmentation: Clustering ● K-means clustering ● Hierarchical clustering ● Benefits and Limitations of market segmentation ● Market Basket Analysis (MBA) ● Objective of MBA ● Used to cross-sell product ● Applications ● Analytical approach to solve: ● Association Rules ● Similarity measures ● Benefits and Examples of MBA
- 4. What is Market Segmentation? ● Market Segmentation is the sub-dividing of customers into homogeneous subset of customers where any subset may conceivably selected as market target to be reached with distinct Marketing Mix.
- 5. How segmentation is useful ● To develop marketing activities ● Increase marketing effectiveness ● Generate greater customer satisfaction ● Create savings ● To identify strategic opportunities ● Allocation of marketing budget ● Adjustment of the product to the market need ● To estimate the level of sales in the market ● To overcome competition effectively ● To contribute towards achieving company goals
- 6. Variable often used in segmentation analysis: Types of Segmentation
- 7. K-Means Clustering Method K-Means Algorithm
- 8. Benefits and Limitations Benefits: ● More efficient than mass marketing ● Target product to a particular segment ● Better able to meet specific needs = happier customers ● The Organization gets to know its customers better ● It helps focus the strategy of the organization Limitations: ● Targeting multiple segments increases marketing costs ● Segmentation can lead to proliferation of products ● Narrowly segmenting a market can hamper the development of broad- brand equity
- 10. Objective ● Identify purchase patterns ● What items tend to be purchase together ● E.g. Bread-Butter, Diapers-Baby lotion-Baby food ● What items are purchased sequentially ● E.g. House-Furniture, Car-Tyre etc. ● What items tend to be purchased by season ● Categorize customer purchase behavior ● identify actionable information ● purchase profiles ● profitability of each purchase profile ● use for marketing ● layout or catalogs ● select products for promotion ● space allocation, product placement
- 11. ● Market basket analysis can also be used to cross-sell products. ● suggest items that you might be interested in, based on your browsing history or what other people have purchased. ● Applications: ● Retail – It determines what items are purchased together, purchased sequentially, and purchased by season ● Telecommunication – It determines what services are being utilized and what packages customers are purchasing ● Banks – analyze credit card purchases of customers to build profiles for fraud detection purposes and cross-selling opportunities ● Insurance – build profiles to detect medical insurance claim fraud ● Medical – symptom analysis, with which a profile of illness can be better identified
- 12. Analytical approaches ● Association Rules ● Support ● Confidence ● Lift ● Similarity measures ● Cosine similarity ● Jaccard similarity ● Euclidean distance
- 13. Association Rules ● Database of transactions: ● All association rules:
- 14. ● Market Basket Benefits ● selection of promotions, merchandising strategy ● uncover consumer spending patterns ● joint promotional opportunities ● Possible Market Baskets ● Customer 1: diapers, baby lotion, grapefruit juice, baby food, milk ● Customer 2: soda, potato chips, milk ● Customer 3: butter, coffee, milk, bread ● Customer 4: beer, potato chips
- 15. Thank You Q & A
- 16. on Spotle.ai, India’s first AI powered, real- time talent network that matches talents with the most relevant opportunities and hirers with the right talents.