Market%20Segmentation,%20Target%20Marketing,%20and%20Positioning - PowerPoint PPT Presentation

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Market%20Segmentation,%20Target%20Marketing,%20and%20Positioning

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Title: Chapter 6 Subject: Market Segmentation, Target Marketing, and Positioning Last modified by: khuram shahzad Created Date: 5/25/2003 3:09:09 PM – PowerPoint PPT presentation

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Title: Market%20Segmentation,%20Target%20Marketing,%20and%20Positioning


1
GRAHAM HOOLEY NIGEL F. PIERCY BRIGETTE
NICOULAUD
4
Customer analysis
2
Introduction
  • Information raw material for decision making
  • Marketing research provision of information to
    reduce level of uncertainty in decision making
  • Chapter includes
  • Information needs about customers
  • Research techniques for collecting data
  • Uses of these techniques i.e. creating
    segmenting market and identifying current and
    potential product/service positions

3
What we need to know about customers
  • Grouped into current and future information
  • Critical issues concerning current customers
  • Who are the prime market targets?
  • What give them value?
  • How they can be brought closer?
  • How can they be better served?
  • For future, we also need to know
  • How will customers and their needs and
    requirements change?
  • Which new customers should we pursue?
  • How should we pursue them?

4
Who is the customer?
Figure 4.1
Initiator
Purchase, use and consumption
Influencer
User/consumer
Decider
Purchaser
5
Information on current customers
  • Recognizing five roles can be useful in targeting
    marketing activity
  • The initiator initiates the research for
    solution to consumers problem
  • The influencer influence on purchase decision
  • The decider actually make the decision
  • The purchaser buys the product or service
  • The user consumes the product or service
  • Different approaches may be suitable

6
Understanding customers-the key questions
Figure 4.2
WHO Is involved in buying and consuming?
HOW Do they use the product?
WHAT Are their choice criteria?
CUSTOMERS
WHERE Do they buy?
WHEN Do they buy/use the product?
WHY Do they buy/use the product?
7
Information on future customers
  • Two main types of change essential to customer
    analysis
  • First change in existing customers their wants,
    needs and expectations (Kaizen approach)
  • Second new customers emerging as potentially
    more attractive targets
  • Main way to analyze customers is through
    marketing research and market modeling

8
Marketing research
9
Figure 4.3
Marketing-research methods
Marketing research methods
Company records
Tailor-maid research
Off-the-peg research
Sales records
Quantitative research
Accounts records
Qualitative research
Desk research
Shared syndicated
Experiments
Surveys
Observation
Focus groups
Depth interviews
Field
Personal
Laboratory
Telephone
Postal
Internet
10
Company records
  • Companys own records
  • Data about who purchase and how much purchase may
    be obtained from invoice records
  • Purchase records may show customer loyalty
    pattern
  • Identify gaps in customer purchasing and
    highlight most valuable customers
  • Collect routine data on as detail a basis as
    possible for unforeseen data requirements

11
Off-the-peg research
  • Tapping into existing research services data
    that are already in existence
  • Information such as market size, growth rates,
    economic trends
  • Crouch and Housden classify research as
  • Secondary or desk research
  • Syndicated research
  • Shared research

12
Secondary desk research
  • Data already been published by someone else
  • Advantages
  • Relatively cheap, quick to obtain, can be
    reliable and accurate i.e. govt. publications
  • Disadvantages
  • Out of date and not specific enough, vary
    dramatically in quality, both from country to
    country and supplier to supplier

13
Following question must be born in mind to check
accuracy of secondary data
  • 1. Who collected the data and why?
  • (Are they likely to be biased in their
    reporting?)
  • 2. How did they collect the data?
  • (Sample or census? Sampling method? Research
    instrument?)
  • 3. What level of accuracy do they claim?
  • (Does the methodology support the claim?)
  • 4. What use did they put the data to?
  • (Is its use limited?)

14
Syndicated research
  • Research buyers share costs and findings of
    research among themselves
  • Conducted by marketing research agencies and sold
    to whoever will buy
  • Examples are A.C. Nelsen, TCA, AGB, TGI etc
  • Advantages methodology usually tried and tested,
    samples are often bigger
  • Disadvantages data are limited in usefulness

15
Shared research
  • Some of the costs and fieldwork are shared by
    number of companies but not results
  • Advantages
  • Established methodologies and are relatively
    quick and cheap to tap into
  • Disadvantages
  • Its scope and number of questions that can be
    asked

16
Tailor-made research
  • Flexibility to design the research to exactly
    match the need of the client company
  • Categorized as quantitative and qualitative
    research
  • Qualitative research emphasize gaining
    understanding and depth in data that can not be
    quantified
  • Quantitative research involves large samples and
    produces quantifiable outputs

17
Qualitative techniques
  • Unstructured or semi-structured interviewing
    methods
  • Two main techniques are used group discussion
    and individual depth interviews
  • Group discussion take the form of relaxed,
    informal discussion among 7-9 respondents
  • The Depth interview takes place between one
    interviewer and one respondent

18
Uses of qualitative research
Figure 4.4
19
Quantitative techniques
  • Include surveys, observation methods and
    experimentation
  • Surveys are vast subject in themselves
  • Surveys include three types personal interviews,
    telephone interviews and postal surveys (mail)

20
Uses of surveys
Figure 4.5
To provide quantitative data on markets and
customers
To determine customer requirements and
expectations
To determine customer behavior
Surveys
To provide data for segmentation of markets
To determine customer opinions and perceptions
21
Surveys
  • Personal interviews
  • Telephone interviews
  • Advantages
  • Greatest flexibility
  • Useful in attitudinal statements,
  • Disadvantages
  • Most expensive to conduct
  • Advantages
  • Data is acquired quickly
  • Low cost
  • Closely controlled
  • Disadvantages
  • Every one may not have telephone

22
Surveys (Contd)
  • Postal methods
  • Advantages
  • Cheapest of all
  • Useful in locating geographically disperse samples
  • Disadvantages
  • Low response rate
  • Little control over who responds
  • Requires clearly laid out questionnaire, well
    pretested to insure clarity

23
Observation techniques
  • Observation techniques can be particularly useful
    where respondents are unlikely to be able or
    willing to give the types of information required
  • Observing what items a shopper has taken from
    supermarket shelf, considered for purchase but
    not bought

24
Experimentation
  • Experiments are either carried out in the field
    or in-house (laboratory)
  • Field experiments take place in the real world
  • In-house experiments are conducted in more
    controlled but less realistic settings

25
Uses of experimentation
Figure 4.6
To establish the strength of relationship
To establish causation
To estimate market potential
To test elements of the strategy
Experiments
To test customer reactions to alternative
strategies
26
The marketing research process
27
Stages in a comprehensive marketing research
project
Figure 4.7
28
Problem definition
  • Define clearly the problem to be tackled
  • Series of discussion between marketing research
    personal and marketing decision maker are
    necessary

29
Exploratory research
  • Identify information gaps and specify the need
    for further research
  • Initially secondary sources and company records
    can be utilized
  • Qualitative research might then be used to explore

30
Quantitative research
  • Help in formulating hypothesis about how market
    is segmented and what factors influence purchase
  • Followed by quantitative study
  • Ask respondents to evaluate competing products
  • Experimentation might also be used in
    quantitative phase of segmentation

31
Analysis and interpretation
  • Turn the data generated into meaningful
    information
  • Factor analysis
  • Cluster analysis
  • Perceptual mapping
  • Finally results will be presented to senior
    marketing decision-maker

32
Organizing customer information
  • Information is organized through MIS
  • Information system (MIS) has five basic
    components
  • Market research interface to collect data
  • The raw data collected
  • Statistical techniques used to analyze
  • Market models to utilize raw data and statistical
    techniques
  • Finally managerial interface as decision maker

33
Marketing decision support systems
Figure 4.8
Marketing decision-maker
Managerial interface
Statistical techniques
Market models
Responses
Decisions
Raw data
Marketing research interface
Marketing environment
34
Raw data
  • Data come into system from variety of sources,
    from internal and external primary and secondary
    sources
  • Stored in various forms i.e. paper, peoples
    head, on computer

35
Statistical techniques
  • Synthesize and analyze the raw data
  • Commonly used statistics are averages, means,
    standard deviations, ranges etc
  • Market models
  • Model is representation of the real world

36
Marketing decision support systems
  • Change in emphases in marketing from information
    systems (MIS) to marketing decision support
    systems
  • Provision of question and answer facilities
  • Grouped into two types
  • Data-oriented decision support systems,
  • Data retrieval and simple analysis using
    statistical techniques
  • Model-oriented decision support systems
  • Simulation and representation of aspects of the
    real world

37
Characteristics of MDSS
  • MDSS support decisions!
  • Support rather than replace, managerial decision
    making
  • MDSS are essentially interactive
  • Ask questions, receive inputs and experiment with
    decision
  • MDSS should be flexible and easy to use
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