3-Segmentation
Dr Zhiyong Yang
International Marketing
Action PlanAction Plan
segmentationndashtargetingndashpositioningsegmentationndashtargetingndashpositioning
Marketing ObjectivesMarketing Objectives
Marketing Strategy
ProductProduct
Marketing Mix
PromotionPromotion PricePrice
DistributionDistribution
ControlControl
International Marketing
Plan
Market AnalysisMarket Analysis
Audiences
General Public
Market Segmentation
Market segmentation is a portion of a larger market whose needs differ from the larger market
Market Segmentation
Market Segmentation Involves Four Steps
1 Identifying Product-Related Need Sets
2 Grouping Customers with Similar Need Sets
3 Describing Each Group
4 Selecting an Attractive Segment(s) to Serve
The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher
The desire of having tattoo is already inside the consumer
The desire to wear a shoe like this is already inside the consumer
To satisfy the consumer you have to bring that tattoo out
Do we always know our NampWs
What is the relationship between customer satisfaction and market share
Differentiating Customers According to Value
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Action PlanAction Plan
segmentationndashtargetingndashpositioningsegmentationndashtargetingndashpositioning
Marketing ObjectivesMarketing Objectives
Marketing Strategy
ProductProduct
Marketing Mix
PromotionPromotion PricePrice
DistributionDistribution
ControlControl
International Marketing
Plan
Market AnalysisMarket Analysis
Audiences
General Public
Market Segmentation
Market segmentation is a portion of a larger market whose needs differ from the larger market
Market Segmentation
Market Segmentation Involves Four Steps
1 Identifying Product-Related Need Sets
2 Grouping Customers with Similar Need Sets
3 Describing Each Group
4 Selecting an Attractive Segment(s) to Serve
The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher
The desire of having tattoo is already inside the consumer
The desire to wear a shoe like this is already inside the consumer
To satisfy the consumer you have to bring that tattoo out
Do we always know our NampWs
What is the relationship between customer satisfaction and market share
Differentiating Customers According to Value
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Audiences
General Public
Market Segmentation
Market segmentation is a portion of a larger market whose needs differ from the larger market
Market Segmentation
Market Segmentation Involves Four Steps
1 Identifying Product-Related Need Sets
2 Grouping Customers with Similar Need Sets
3 Describing Each Group
4 Selecting an Attractive Segment(s) to Serve
The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher
The desire of having tattoo is already inside the consumer
The desire to wear a shoe like this is already inside the consumer
To satisfy the consumer you have to bring that tattoo out
Do we always know our NampWs
What is the relationship between customer satisfaction and market share
Differentiating Customers According to Value
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Market Segmentation
Market segmentation is a portion of a larger market whose needs differ from the larger market
Market Segmentation
Market Segmentation Involves Four Steps
1 Identifying Product-Related Need Sets
2 Grouping Customers with Similar Need Sets
3 Describing Each Group
4 Selecting an Attractive Segment(s) to Serve
The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher
The desire of having tattoo is already inside the consumer
The desire to wear a shoe like this is already inside the consumer
To satisfy the consumer you have to bring that tattoo out
Do we always know our NampWs
What is the relationship between customer satisfaction and market share
Differentiating Customers According to Value
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Market Segmentation
Market Segmentation Involves Four Steps
1 Identifying Product-Related Need Sets
2 Grouping Customers with Similar Need Sets
3 Describing Each Group
4 Selecting an Attractive Segment(s) to Serve
The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher
The desire of having tattoo is already inside the consumer
The desire to wear a shoe like this is already inside the consumer
To satisfy the consumer you have to bring that tattoo out
Do we always know our NampWs
What is the relationship between customer satisfaction and market share
Differentiating Customers According to Value
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
The PURPOSE OF MARKETING is to help the consumer experience the proverbial Tattoo that is already within himher
The desire of having tattoo is already inside the consumer
The desire to wear a shoe like this is already inside the consumer
To satisfy the consumer you have to bring that tattoo out
Do we always know our NampWs
What is the relationship between customer satisfaction and market share
Differentiating Customers According to Value
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
What is the relationship between customer satisfaction and market share
Differentiating Customers According to Value
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Differentiating Customers According to Value
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
How can you determine which customers need to be ldquofiredrdquo
This requires a historical analysis of an individual customerrsquos revenues and costs
Costs must include all expenses involved in servicing this customer
Very few companies capture transaction-specific data at the individual customer level over extended time periods
Caution What are the costs of ldquofiringrdquo unwanted customers
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Understanding Customersrsquo Needs and WantsInternational Marketing Research
The marketing concept is universal but customer wants are not
IMR helps firms understand consumers across national borders Think globally learn locally
Nestle approach
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Latent and Manifest Motives
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Researching Consumer Motives
Manifest 1 Undisguised Questioning 2 Disguised Questioning (Conscious Projection) 1048633 Third Person 1048633 Mason Haire Technique Latent Disguised Unguarded (Natural) response
(Unconscious Projection) (see Table 10-2 for details)
1048633 Word Association 1048633 Sentence Completion 1048633 Story Completion 1048633 Mason Haire Technique
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
Case 3-1 The Sure Thing That Flopped
Whatrsquos wrong with market research
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
IMR Objectives
Diagnostic
Predictive
Descriptive Gathering and presenting
factual statements
Explaining data
Attempting to estimate the results of a planned marketing decision
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
IMR ChallengesAccess to information
Secondary data availability and reliability Primary data issues
Data collection ndash eg respondents access to Internet reliability of postal service
Language barriers Is 100 accuracy in translation possible
High-context vs low-context cultures Some concepts are not universal Back-translation
Cultural norm barriers Response to incentives
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
3-2 Understanding Markets Through International Market Research
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
17
Geography
Demographics
Psychographics
Behavior
Market Segmentation Bases for Segmentation
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
18
By Region
City vs Rural
By Climate By Density
Bases for Geographic Segmentation
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
19
Bases for Demographic Segmentation
Age Gender Income Ethnic background Family Life Cycle Occupation education religion race
and nationality
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
20
Lifestyle
Personality
Bases for Psychographics Segmentation
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
21
Occasions
Benefits
User Status
Usage Rate
Loyalty Status
Bases for Behavior Segmentation
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
22
Occupational Influences on Consumption
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
23
Education Level Influences on Consumption
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
24
Age Influences on Consumption
Age Influences on Consumption
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
25
Social Class and Leisure
Lower-class bowling hunting visiting casinos TV and bingo
Middle-class team sports (eg volleyball) cards shopping
visiting friends
Upper-class golf polo operas symphonies and plays
Budweiser Busch Michelob
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
26
Discussion
You are the owner of two furniture stores one catering to upper-middle class consumers and the other to lower-class consumer How do social class differences influence each storersquos
product lines and styles
advertising media selection
the copy and communication style used in the ads
payment policies
27
Case 3-4 Groupon
27
Case 3-4 Groupon
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