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

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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