Market Analysis Overview

CEB Marketing Excellence Survey®
MARKET ANALYSIS Overview

Course Workbook
This course will provide an overview of the value of market analysis. It reviews the
sources for gathering customer information and how to create customer value using
this customer information. Finally, it will provide an overview of market segmentation
including how to identify and segment your customers.
To review this course, please visit: www.mes.executiveboard.com/Members/ResearchAndTools/AllTraining.aspx.
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© 2013 The Corporate Executive Board Company. All Rights Reserved.
MES5662013SYN
Table of Contents
Introduction Module 1 (Continued)
•• Market Analysis Definition.......................................p. 1 •• Real-World Example:
•• Course Overview.........................................................p. 1 Breakfast Food Supplier................................... p. 15
•• What You Will Learn.................................................p. 2 •• Review..................................................................... p. 16
•• Customer Understanding........................................p. 2 •• Retention Quiz..................................................... p. 17
•• Market Segmentation...............................................p. 3 •• Action Item One.................................................. p. 18
•• Learning Objectives..................................................p. 3 Module 2

Module 1
Market Segmentation
Customer Understanding and •• Introduction to Market Segmentation........ p. 19
Customer Research Techniques •• Definition: Market Segmentation.................. p. 19
•• Definition: Customer Understanding................. p. 4 •• Grouping Customers......................................... p. 20
•• Definition: Customer Need.................................... p. 4 •• Goal of Market Segmentation....................... p. 20
•• Definition: Customer Want.....................................p. 5 •• Pitfalls of Misaligned Customers................... p. 21
•• Influence of Marketers..............................................p. 5 •• Real-World Example: Lockhart Printers..... p. 21
•• Definition: Products..................................................p. 6 •• Setting Up Your Segmentation Method.... p. 22
•• Definition: Benefits....................................................p. 6 •• Factors Used to Create Segments.............. p. 22
•• Definition: Preferences.............................................p. 7 •• Needs-Based Segmentation.......................... p. 23
•• Definition: Customer Value.....................................p. 7 •• Needs-Based Segmentation Process......... p. 23
•• Definition: Customer Satisfaction........................p. 8 •• Developing Touch Points................................ p. 24
•• Review............................................................................p. 8 •• Refining Attributes............................................ p. 24
•• Real World Example: Ragha Shoes.....................p. 9 •• Cluster Analysis.................................................. p. 25
•• Review............................................................................p. 9 •• Activity: Segment Clustering Process........ p. 25
•• Customer Knowledge •• Action Item Two................................................. p. 26
Leads to Profitability..............................................p. 10 •• Selecting Your Target Segment.................... p. 27
•• Factors of Customer Satisfaction......................p. 10 •• Review.................................................................... p. 28
•• Options for Getting Customer Information.... p. 11 •• Retention Quiz.................................................... p. 29
•• Passive Versus Active Approaches.................... p. 11 •• Action Item Three..............................................p. 30
•• Options for Getting Customer Information... p. 12 Course Review
•• Data Mining................................................................ p. 12
•• Combining Insights with Other Information.. p. 13 Conclusion.............................................................. p. 31
•• Review.......................................................................... p. 13
Glossary of Terms.......................................... p. 32
•• Customer Value Analysis....................................... p. 14
•• Perceptual Map......................................................... p. 14
MES5662013SYN
Introduction
Introduction
Market Analysis Definition
• Market analysis is all about how you get and
analyze the piles of data you’re probably getting
about your customers and markets.
• Good analysis will help give you insights for
your marketing programs as well as your
module 1
products and services.
Module 2
Notes
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Course review
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Course Overview
• This course provides an overview of the ideas
and concepts that you will need to be aware
of to carry out the activities within market
analysis.
• In subsequent courses in this topic area, we will
take a closer look at how you can be successful
in the processes involved in these activities.
• In this course we’ll examine what you need
to know to get good customer information and
do good market analysis.
Notes
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MES5662013SYN MARKET ANALYSIS Overview: Course Workbook 1
What You Will Learn
Introduction
This course will help you to:
• Have a better idea of what types of activities
you, as a marketer, need to support in market
analysis, and
• Be able to identify where there might be gaps in
your own market analysis activities.
module 1
Module 2
Notes
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Course review
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Customer Understanding
The first half of this course focuses on customer
understanding.
• You will learn about the different sources
for customer information.
• You will learn how to create customer
offerings that will keep customers coming
back for more.
Notes
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Market Segmentation
Introduction
The second part of this course is all about market
segmentation.
• You will learn how to identify and segment
your customers.
• You will learn how to get more efficient at
creating and marketing your products or
services to a select group of target customers.
module 1
Notes
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Module 2
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Course review
Learning Objectives
We want you to learn the following:
1. Understand how customer information affects
your business and where you can find this kind
of information.
2. Learn the steps of the segmentation process.
3. Create an understanding of what makes
a segment profitable.
Notes
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Customer Understanding
Introduction
and Customer Research Techniques
Definition: Customer Understanding
Customer Understanding—is a holistic
understanding of customers’ needs, and the
relative priority of those needs, across the entire
purchase and use cycle.
module 1
Ultimately, you want to understand in a deep
and meaningful way why customers buy, what
they buy, when they buy, how they buy, and how
they use what they buy.
Module 2
Notes
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Course review
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Definition: Customer Need

A Customer Need—is something that your
customer needs that motivates them to buy a
product. Technically, we will define a need as a
“an unmet requirement.” A customer will seek
a product or service to satisfy that requirement.
Whether your customers are consumers, or
business customers, they all have requirements
that need to be met.
Rule Number One for Customer Needs: Your
product or service is not going to sell unless it
fulfills an important customer need.
Notes
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Definition: Customer Want
Introduction
A Customer Want—is the particular type
of thing that a customer wants to satisfy a
fundamental need.
Corollary to Rule Number One: A marketer,
for all practical purposes, cannot create a need.
module 1
Notes
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Module 2
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Course review
Influence of Marketers
• Customers have needs that arise from a host
of causes, all of which are outside of the control
of marketers.
• Marketers can and do have tremendous
influence over wants. Once someone needs
something, he or she will immediately try to
satisfy that need by wanting to buy a product
or service that eliminates the feeling of being
deprived.
• Marketers try to isolate customers who
need and want their products. Trying to sell
products to customers without a need and want
for your products is a waste of time, energy,
Notes and money.
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Reflection Questions
______________________________________________ Do you know what the unmet needs of your
customers are?
______________________________________________
Can you name two or three of them?
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How does your product or service satisfy these
______________________________________________ needs?
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Definition: Products
Introduction
Products are the objects offered by a company
for sale. While a customer must buy a product,
what they are really interested in is how the
product will relieve wants and needs.
module 1
Notes
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Module 2
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Course review
Definition: Benefits
Benefits are the ability of the product to create
satisfaction—specially relative to other products
that can satisfy the same basic need and wants.
In later sections, we will discuss how important

it is for marketers to understand exactly
what benefits are being extracted by customers
who buy your products, especially relative
to competitors.
Notes
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Definition: Preferences
Introduction
Not all benefits are created equal. While a product
may offer a host of potential benefits to a customer,
some of these benefits are more important than
others.
Preferences are the way in which customers
rank order these benefits.
module 1
Notes
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Module 2
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Course review
Definition: Customer Value
Customers approach a purchase situation with
a set of expectations about how the product will
yield benefits.
Customer value is the ability of the company
to deliver the expected benefits. It is how well
the product satisfies all the wants, especially
those high in preference, relative to what was
expected. The ability of the product to do
what the customer actually expected it to do is
critical.
Notes
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Definition: Customer Satisfaction
Introduction
Finally, the customer will review the entire
purchasing process and assess the extent to
which all this has worked. Marketers refer
to the result of this review as customer
satisfaction. That is, if the expectations were
met or exceeded, satisfaction will result.
The more you exceed expectations, the more
satisfaction your customers experience. If
expectations are not met, you get dissatisfaction.
module 1
Satisfied customers return to buy products and
tell a few of their friends about it. Dissatisfied
customers do not return and tell many of their
friends about it.
Notes
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Module 2
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Course review
Review
• Customer understanding is a holistic
understanding of customer needs.
• A need is a customer’s unmet requirement.
You cannot create needs.
• A product must fulfill a need to be successful.
• A want is a particular way a customer would
like to fulfill a need.
• A benefit is how a product creates satisfaction
in a customer.
• Customers rank benefits of products in an order
called customer preferences.
Notes • How well a company delivers on a product’s
promised benefits is referred to as customer value.
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Reflection Question
______________________________________________ Remember, a marketer cannot create customer
needs, like the need to eat, but they can influence
______________________________________________ customer wants, like wanting to eat a certain
company’s product.
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How does your company position your product
______________________________________________ or service to influence what your customer
wants?
______________________________________________
Real World Example: Raga Shoes
Introduction
Situation
Ragha Shoes was losing customers to large
competitors.
Action
The company instituted a store visit program for
their executives to better understand the customer
experience.
module 1
Results
By doing this, Ragha Shoes was able to make
changes to their whole customer experience,
resulting in improvements in foot traffic, customer
satisfaction, and same-store sales.
Notes
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Reflection Question
Module 2
______________________________________________ In the Ragha shoes example, executives went
into their stores and acted as customers to better
______________________________________________ understand the customer experience.
______________________________________________ What do you think your company’s executives

could do that would be similar to this exercise?
______________________________________________ What do you already know about your product
Course review
or service that your executives might learn by
______________________________________________ participating in that kind of firsthand customer
interaction?
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Review
• Need—an unmet requirement
• Want—anything that satisfies a need
• Benefit—the ability of a product to satisfy
a need and want
• Preference—the ranking of benefits based
on importance
• Customer value—the benefits delivered by
the product
• Customer satisfaction—the extent to which
expectations were met or exceeded.
Notes
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Customer Knowledge Leads to Profitability
Introduction
• By analyzing your customers’ needs, you can
develop offerings that create the most value
for your customers.
• A product that creates value for its customers

is one that will drive customer satisfaction.
module 1
Notes
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Module 2
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Course review
Factors of Customer Satisfaction
• Customer satisfaction depends on how well your
product or service fulfills a customer’s need.
• Satisfied customers typically stay more loyal to

your company and will buy more and higher-
margin products or services from your company.
Notes
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Options for Getting Customer Information
Introduction
One option to get customer information is to buy
information from companies who collect this type
[Subsection Title] of information. These market research companies
can collect and sell many types of customer
information for companies that are willing to shell
out some money to have access.
module 1
Notes
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Module 2
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Course review
Passive Versus Active Approaches
• If your company wants to collect the
information itself, you will usually use one
of two general approaches for getting
information about their customers:
• You can use a passive approach—such
as sending surveys out—or you can use
a more direct and interactive approach
by actively interviewing customers individually
or in focus groups.
• Neither method will yield a comprehensive
understanding of customers. And most
companies must use a variety of methods
for uncovering the motivations and desires
Notes
of their customers.
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• Surveys will take fewer resources than
______________________________________________ interviews; however, surveys can’t “dive deeper”
into root causes of customer needs due to the
______________________________________________ inflexible nature of questionnaires.
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Options for Getting Customer Information
Introduction
• By contrast, interviews and focus groups can
yield deep insights into customers perspectives
because of the high level of interactivity, but
they typically require more resources—in
terms of staff time, costs associated with travel,
etc. These costs can be prohibitive for some
companies.
• But companies in highly competitive and quickly
module 1
changing markets find them to be a necessity.
• Interviews or focus groups are better when they
are not associated with a sales visit. Customers
are more willing to share current challenges and
Notes ongoing needs when it is clear that the company
will not use such information to “pitch” a
______________________________________________ product or service offering immediately.
Module 2
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Course review
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Data Mining
• Whether your information is a part of
a customer relationship management system
or some other sort of sales-related information
capture, you probably have more information
about your customers than you realize. It’s just
a matter of somehow taking that information
and putting it to use.
• No matter what method you chose, beware:
the way in which you collect and prioritize
your information may affect the quality and
comprehensiveness of the analysis conducted
on the data.
Notes
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Combining Insights with Other Information
Introduction
• No matter what, you need to get some customer
information. You are probably going to have
to use lots of different methods.
• Those insights will be combined with

knowledge of history, industry data, salesperson
insights, engineers’ perspectives, complaint
information, and sales records to yield a
comprehensive view of the marketplace and
module 1
changing customer needs.
Notes
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Module 2
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Course review
Review
• Customer satisfaction depends on how well you
fulfill your customers’ needs.
• Satisfied customers are more loyal.
• You can buy market research information or

you can collect it yourself using surveys, focus
groups, or individual customer interviews.
• You can also data mine information you have

already collected from a number of sources.
Notes
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Customer Value Analysis
Introduction
• It can be challenging to understand which
benefits create the most value for your
customers. Market-oriented organizations need
to figure out a way to identify which product or
service benefits are those key value drivers.
• Once you have identified the benefits that a
customer most values, you can decide which
attributes to include in your product or service.
module 1
A Customer Value Analysis is a way of
examining how companies can compare the
perceived value of your product versus the
competition. It’s useful in not only seeing where
you stack up in the market but also in plotting
your positioning strategy for your product in
the market.
Notes
Module 2
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Course review
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Perceptual Map
• One way for marketers to visually show how
a customer perceives your product or services
versus your competition is a perceptual map.
• Typically, a perceptual map compares products
or services on two dimensions.
• When you are introducing a new product or
service, this tool will help you find an ideal
place to position your new offer.
Notes
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Real-World Example: Breakfast Food Supplier
Introduction
Situation
Research showed that consumers based their
perceptions on two critical variables, speed and
expense. A marketer selling sausage and eggs
has a real challenge, because they’re occupying
the worst product space—both expensive and slow.
Action
To respond to the challenge, companies created
module 1
microwavable, precooked products that are fast
and convenient to serve.
By packaging sausage and eggs together, the product
was actually less expensive than buying sausage and
eggs separately and the company was able to become
Notes more competitive in the breakfast market.
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Module 2
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Course review
Real-World Example: Breakfast Food Supplier (Continued)
Result
• Sausage and eggs moved directly in competition
with cold cereal at a time when the price of
cold cereal increased. Sales of sausage and
eggs increased, customers who wanted a
hearty breakfast enjoyed the taste, satisfaction
increased, and profits rose for farmers and
processors of farm products.
• The point is that, to an extent, marketers

reposition their perceptual space by changing
one or more key variables like products, prices,
promotion, and distribution.
Notes
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Review
Introduction
• Customer understanding is a holistic
understanding of customers’ needs and the
relative priority of these needs across the whole
customer purchase cycle.
• Understanding your customers’ needs is
essential for creating a product or service that
satisfies and creates value for your customers.
You can get this information about your
module 1
customers from two mail methods: surveys or
focus groups.
• You can get this information about your
customers through two main methods: a passive
approach or an interactive approach.
Module 2
Where do you get information about your
customers for one of your products or services?
Would you recommend using additional sources

Notes to supplement your current source?
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Course review
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Retention Quiz
Introduction
Please circle one answer per question.
1. Which of the following is an example of a passive approach to customer research?

a. Survey
b. Focus Group
c. Interview
module 1
2. Which of the following does NOT affect customer satisfaction?
a. Product or Service Benefits
b. Value
c. Customer Perception
d. Trade-Off Analysis
Module 2
3. A customer need is what?
a. An Unmet Requirement
b. A Customer Preference
c. The Ranking of Customer Preferences
d. The Ability to Create Satisfaction
Course review
Note: To receive credit for this quiz and see an explanation of each correct answer,
take this quiz online in slide 16 of this course at www.mes.executiveboard.com.
Notes
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Action Item One:
Introduction
In this course, we talked about many ways to get data about your customers. To get a baseline
understanding of what you are currently doing, think about a product or service and fill out
the table below.
What sources of data might you consider adding to your current mix?
Product or Service Name:
module 1
Use Frequently Use Infrequently Use Never
Accounting Records
CRM Database
Sales Records
Module 2
Surveys
Focus Groups
Loyalty Programs
Course review
Trade Publications
Market Research Firms
Association Reports
Private Commissions
Other:
Market Segmentation
Introduction
Introduction to Market Segmentation
In this module we will look at:
• The processes for using your customer
information to create different market segments,
• A definition of market segmentation,
module 1
• Segmentation methodologies, and
• How you can select the most attractive market
segments to target.
Module 2
Notes
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Course review
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Definition: Market Segmentation

A market is a group of customers or potential
customers. When you segment a market, you
try to identify a group of customers with
common needs within that market. And
hopefully, the entire segment can be won over
with a common positioning and marketing.
Notes
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Grouping Customers
Introduction
• Grouping customers with common needs will
help you with your strategy to attract, satisfy,
and retain target customers.
• Effective segmentation can improve many of
your organization’s most important decisions—
like what products to develop or what markets
to enter and how to enter them.
• And at a broad level, effective segmentation
module 1
should also deliver unique insight into customer
attitudes and behavior, which in turn helps you
understand what customers to pursue and how
to serve them better than your competitors do.
Notes
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Module 2
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Course review
Goal of Market Segmentation
• No company can satisfy everyone, so don’t even
try! What you want to do is align the capabilities
of your organization to create value within a
subset of customers in your marketplace.
• When you encounter a customer that you don’t
have the capacity to satisfy, there are only two
choices:
1. Fire the customer (or don’t accept the
business), or
2. Create processes within the organization
that can satisfy the customer.
Notes
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Pitfalls of Misaligned Customers
Introduction
• Far too often organizations will accept bad
business based on the adage “the customer
is always right.” When a firm accepts a customer
that it can’t satisfy, customers with legitimate
needs will be ignored and leave to go to
a competitor.
• Plus, these types of misaligned customers will
eventually cost the organization profits. In
module 1
trying to satisfy someone who isn’t served by
your current configuration of products and
services, your costs will rise due to extra costs
associated with the “special treatment”
for these “bad” customers.
Notes
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Think about what kind of impact it would have on
Module 2
______________________________________________ your company if you “fired” unprofitable clients
or were more selective in the customers you did
______________________________________________ business with.
How would this change the way you sell and

______________________________________________ market your product or service?
______________________________________________ Would this be the right strategy for your
Course review
company?
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Real-World Example: Lockhart Printers

Situation
Lockhart Printers is a high-tech company that
makes and sells printers to other companies for
business purposes.
Action
They developed a segmentation study to better
understand their customers. After completing this
research, they identified a couple of segments, like
the newspaper company market, who could benefit
from their printers that they hadn’t targeted in the
past.
Result
Lockhart Printer’s deal size for sales with
companies in this segment doubled and their sales
Notes per sales rep also increased.
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Setting up Your Segmentation Method
Introduction
• The most appropriate segmentation method for
your organization depends on how you expect
to use the segmentation research and what
your objectives are for using this research.
• No single segmentation model can satisfy all
objectives. In fact, many organizations use
multiple segmentation methods. The trick is to
strike a balance between:
module 1
1. Your desired business goals,
2. The depth of the information required to get
there, and
3. Your available resources.
Notes
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Module 2
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Course review
Factors Used to Create Segments
Let’s start with three factors that both business-
to-business and business-to-consumer marketers
use to create their segments:
1. Needs—what customers want out of the
product or service,
2. Demographics—things like company size
or income, gender or geography, and
3. Psychographics—what customers believe or
their opinions or company philosophies.
Notes
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Needs-Based Segmentation
Introduction
Needs-based segmentation divides the market into
groups based on common needs, attitudes, and
behaviors. We are going to focus on needs-based
segmentation during this module since it is one
of the most widely used methods.
module 1
Notes
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Module 2
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Course review
Needs-Based Segmentation Process
If you want to do needs-based segmentation,
you conduct research with customers to collect
information on their needs, analyze the data to
understand the connections, and then group
similar needs together in clusters to create
segments.
Notes
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Developing Touch Points
Introduction
• To start the process you need to understand
your customer’s experience with your company.
You can do this by developing a picture of your
organization’s interactions with customers—
what we call customer touch points. These
include direct interactions like sales visits and
indirect interactions like advertisements.
• Then you can create a visual model depicting
module 1
your customer experience, from the customer’s
perspective, that illustrates where customers
find value.
Notes
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Module 2
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Course review
Refining Attributes
Then you can estimate, from your customers’
perspective, the most important interactions
they have with you. You need to try to eliminate
or consolidate low-importance attributes—the
things that customers don’t really value. At the
same time, try to break areas of high importance
down into smaller parts to better understand why
customers value what they do.
Notes
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Cluster Analysis
Introduction
• The segments themselves are created using
a “cluster analysis” where you can easily see
customers who have similar needs.
• Once you identify a segment, you can then
profile the segment—the details of its typical
characteristics. A segment profile describes the
needs and priorities of customers in the segment
and their characteristics.
module 1
Notes
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Module 2
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Course review
Activity: Segment Clustering Process
• Imagine you work for a telecommunications
company that provides internet service and
telephone service to consumers and business
customers. You have just completed customer
research where you surveyed customers about
their most important needs for the internet and
telephone services you offer.
• What you are left with is a list of the top nine
most important needs that came out of this
research. Your job is to take these needs and
group your customers into three distinct
segments. Once you have grouped the customers
with these common needs into the different
segments, you will be able to target these
Notes customers with appropriate offers.
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Action Item Two:
Introduction
Match the needs below with the appropriate groupings. Try to group the needs that appear most
appropriate for each of the groupings.
Groupings
A. Consumer—Low Use
B. Business—Low Use
module 1
C. Business—High Use
Needs Grouping
1 To check personal e-mail once in a while Consumer—Low Use
Module 2
2 For use in case of emergencies
3 Heavy volume of calls to clients internationally
4 Infrequent calls to sales prospects
Course review
5 Infrequent calls to local friends
6 Occasional long-distance use to call a relative internationally
7 High-bandwidth virtual presentations to clients
8 Frequent calls to local sales prospects
9 Occasional calls to international clients
10 Low bandwidth for personal computers for several employees
Note: To receive credit for this action Item, complete this activity online
in slide 27 of this course at www.mes.executiveboard.com.
Selecting Your Target Segment
Introduction
• Once you’ve done your segmentation research
and discovered needs-based segments within
the market, you’ll want to start selecting the
best segment to target.
• Marketers need to think about which segments
will be the best fit for your company and your
company’s strategy.
module 1
Notes
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Module 2
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Course review
Selecting Your Target Segment (Continued)
• You must make sure that the segment will be
profitable for your organization if you decide
to target it. The pure financial size of the
segment itself may not mean that the particular
segment will be profitable for your organization.
In fact, sometimes making decisions based
purely on financial metrics like current sales
growth or margins can be misleading.
• While a market segment may be attractive
for several reasons, oftentimes the organization
does not have the ability to satisfy those
customers. Again, you must match the value
generating capability of the organization and
the selection of customers that need and want
the your products and services.
Notes
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
Selecting Your Target Segment (Continued)
Introduction
This is strategically important! This decision
will in effect determine who the competition
will be, what systems are required to satisfy the
customers and, perhaps more importantly, what
other customer segment opportunities will be
rejected, which could include some very important
future markets.
module 1
Notes
__________________________________________________________________________________________________
Module 2
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
Course review
Review
1. Needs-based segmentation divides the
marketing into groups based on common
needs, attitudes, and behaviors.
2. Because customer needs vary so much,
market-oriented companies divide their
market into smaller segments with similar
needs that are easier to focus on.
3. A segment’s attractiveness is based on a
combination of the abilities of the organization
to reasonably target it, and the make up of
the segment itself.
Notes
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
Retention Quiz
Introduction
Please circle one answer per question.
1. What is one of the most common segmentation methodologies?

a. Needs
b. Psychographics
c. Demographics
2. What is not a factor to consider when selecting the most attractive segments?
module 1
a. Target Segment Needs
b. Organizational Resources
c. Internal Goals
d. Short-Term Profits
3. Needs-based segmentation divides groups based on what factors?
Module 2
a. Needs
b. Attitudes
c. Behaviors
d. All of the Above
Course review
Note: To receive credit for this quiz and see an explanation of each correct answer,
take this quiz online in slide 30 of this course at www.mes.executiveboard.com.
Notes
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
Action Item Three:
Introduction
Try to determine if one of your target segments is the best target segment for one of your products or
services. (Note: you may not have all the information to make a real decision, but use what information
you have, even if its is just a guess for now.)
1. Think of one product or service your company provides and list it below.
Product or Service:
module 1
2. What is the current main target segment for this product or service?
Target Market:
3. What are the common needs, attitudes, or behaviors of this segment?
Module 2
Needs:
Attitudes:
Behaviors:
Course review
4. Who are the top two competitors for your product or service?
1
2
5. What are three other segments you are not currently targeting for this product or service that you
could potentially target?
1
2
3
6. Based on all the information above, write a brief (one paragraph) argument for why your product is
or is not (pick one) targeting the right segment of customers. If you choose the “is not” argument,
explain what segment might be better suited and why.
To answer this question you will want to think about:
How well does your product or service meet the target segments needs compared to your
competitors?
What opportunities, if any, can be found in the segments you are not targeting?
Conclusion
Introduction
Hopefully, as a result of this course:
• You now have a better understanding of how
customer information affects your business
and where you can find customer information.
• You should also understand the principles
behind how you create value for your customers
module 1
using this information.
• Finally, you should have a good idea of the steps
of the segmentation process and the factors that
make a profitable segment.
Notes
Module 2
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
Course review
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
Glossary of Terms
Introduction
Customer Needs—An unmet requirement, or something that your customer needs that motivates them
to buy a product
Customer Wants—The particular type of thing that a customer wants to satisfy a fundamental need
module 1
Customer Preferences:—The way in which customers rank order product benefits
Customer Satisfaction—Measure of how satisfied or dissatisfied customers are with a company, product
or service, or a part of the product or service
Customer Understanding:—A holistic understanding of customers’ needs, as well as the relative priority
of those needs, across the entire purchase and use cycle
Module 2
Customer Value—The ability of the company to deliver the expected benefits with a product or service
Market—A group of customers or potential customers
Course review
Market Analysis—An objective way of assessing a market, its customers, buyers, and suppliers, while
understanding competitor’s positions and strategy
Market Research—Processes used to gather information about customers, the market, competition,
environment, and other key factors
New Product Development—The overall process of strategy, organization, concept generation, and
marketing plan generation for a new product
Market Segmentation—Process of dividing and subdividing the total market into small, clearly identifiable
groups based on shared characteristics
Product—The objects offered by a company for sale
Product Benefit—The ability of the product to create satisfaction
Target Market Identification—The process of using income, demographic, and psychographic

characteristics of a population to identify groups and areas most favorable for business success
Congratulations! You have finished this training course. Now head back to the MES Web site listed
below and look for more courses to grow your marketing knowledge:
www.mes.executiveboard.com/Members/ResearchAndTools/AllTraining.aspx.
CEB marketing Excellence Survey®

MES5662013SYN 32

Market Analysis Overview

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CEB Marketing Excellence Survey®

MARKET ANALYSIS Overview

To review this course, please visit: www.mes.executiveboard.com/Members/ResearchAndTools/AllTraining.aspx.

•• What You Will Learn.................................................p. 2 •• Review..................................................................... p. 16

•• Customer Understanding........................................p. 2 •• Retention Quiz..................................................... p. 17

•• Market Segmentation...............................................p. 3 •• Action Item One.................................................. p. 18

•• Learning Objectives..................................................p. 3 Module 2

Definition: Customer Need

In later sections, we will discuss how important

______________________________________________ What do you think your company’s executives

• A product that creates value for its customers

• Satisfied customers typically stay more loyal to

• Those insights will be combined with

• Satisfied customers are more loyal.

• You can buy market research information or

• You can also data mine information you have

• The point is that, to an extent, marketers

Would you recommend using additional sources

1. Which of the following is an example of a passive approach to customer research?

Product or Service Name:

Market Research Firms

Definition: Market Segmentation

How would this change the way you sell and

Real-World Example: Lockhart Printers

1 To check personal e-mail once in a while Consumer—Low Use

3 Heavy volume of calls to clients internationally

4 Infrequent calls to sales prospects

6 Occasional long-distance use to call a relative internationally

7 High-bandwidth virtual presentations to clients

8 Frequent calls to local sales prospects

9 Occasional calls to international clients

10 Low bandwidth for personal computers for several employees

1. What is one of the most common segmentation methodologies?

3. Needs-based segmentation divides groups based on what factors?

3. What are the common needs, attitudes, or behaviors of this segment?

Market—A group of customers or potential customers

Product—The objects offered by a company for sale

Product Benefit—The ability of the product to create satisfaction

Target Market Identification—The process of using income, demographic, and psychographic

CEB marketing Excellence Survey®

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