CLUSTER ANALYSIS

MARKETING RESEARCH
• AMA-
The function that links the consumer,
customer & public to the marketer through
info.that is used to identify & define marketing
opportunities & problems; generate , refine &
evaluate mktg.actions;monitor mktg
performance & improve the understanding of
mktg. as a process.
 WHAT IS CLUSTER ANALYSIS?
• 'Cluster analysis' is a class
of statistical techniques that can be applied to
data that exhibit “natural” groupings
• sorts through the raw data and groups them
into clusters.
• A cluster is a group of relatively homogeneous
cases or observations
• Objects in a cluster are similar to each other
• dissimilar to objects outside the cluster,
particularly objects in other clusters.
DIAGRAM ILLUSTRATION
OF
CLUSTERS
 TYPES OF CLUSTERING
• Non-Hierarchical clustering 
• Sequential Threshold method 
• Parallel Threshold method 
• Optimizing Partitioning method
• Hierarchical clustering
• Divisive clustering 
• Agglomerative clustering 
 Continued……………………………..
• Centroid methods 
• Variance methods
• Ward’s Procedure 
• Linkage methods 
• Single Linkage method
• Complete Linkage method
• Average Linkage method
EXAMPLE ----- THE VACATION TRAVEL
MARKET.
1) The demanders - they want exceptional
service and expect to be pampered;

2) The escapists - they want to get away and just

relax;

3) The educationalist - they want to see new

things, go to museums, go on a safari, or
experience new cultures.
 WHERE DO WE USE IT…..??
• Segmenting the market and
determining target markets

• Product positioning and New Product

Development

• Selecting test markets (experimental

techniques)
 QUESTION 1.
• The brand Maggi signifies “make easy food”
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree
 QUESTION 2.
• “I will purchase any fast food launched under
the brand name of Maggi”.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree
 QUESTION 3.
• The first thing that comes to your mind when
you hear Maggi is 2-minutes noodles.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree
 QUESTION 4.
• Maggi provides me with the widest range of
food pdts. in comparison to other brands.
• Strongly Agree
• Agree
• Neutral
• Disagree
• Strongly Disagree