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• Compare the differences between customer research and marketing research. • Describe the differences between quantitative research and qualitative research. • Understand the use of positivist and interpretivist research.
• Describe the steps in the consumer research process. • Explain the difference between primary and secondary research. • Discuss the differences between qualitative and quantitative research designs and why you would choose one over the other. • Discuss the differences between qualitative and quantitative data collection instruments or methods.
• Identify the various probability and nonprobability sampling methods. • Segmentation- definition, types • Viability of segments
Segmentation Market Segmentation is the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix. .
WHY SEGMENTATION? • Rather than trying to compete with an entire market. set distribution channels and advertising & promotions strategies effectively . company must identify parts of market that can serve better than competition • Segmentation helps sellers develop the right product and adjust prices.
.cont’d) • Segmentation strategy differentiates offerings through styling. promo appeals. set distribution channels and advertising & promotions strategies effectively .WHY SEGMENT (. packaging. method of distribution • Segmentation helps sellers develop the right product and adjust prices.
to guide repositioning of existing products and add new market segment .to discover needs/wants on specific consumer gaps .HOW MARKET SEGMENTATION WORKS • Segmentation studies .
i. Acorn.e AC Nielsen.HOW MARKET SEGMENTATION WORKS (..to determine most appropriate media to place ads through surveys and analysis of data .cont’d) • Segmentation research . Roy Morgan research .
Types of Segmentation • Geographic Segmentation • Demographic Segmentation • Psychological Segmentation • Psychographic Segmentation • Socio-cultural Segmentation • Use-Related Segmentation • Usage-Situation Segmentation • Benefit Segmentation • Hybrid Segmentation .
e age.identifiable. measurable stats of a population i.easier to measure.BASE FOR SEGMENTATION 9 factors to consider on segmentation • Demographic segmentation . sex. marital stats etc . to assess size of target market .
usually people in the same area share the same needs and wants .cont’d) • Geographic segmentation .market divided by location/localizing the marketing strategy ..different spending patterns/demands .BASE FOR SEGMENTATION (.
cont’d) • Psychological segmentation . etc . attitude.BASE FOR SEGMENTATION (. level of involvement..intrinsic qualities of the individual’s desires: motivations.
lifestyle analysis . opinions on events and issues/ reaction to a product . buying motives.to identify a consumer’s personality.cont’d) • Psychographic segmentation ..BASE FOR SEGMENTATION (.
income .culture/subculture and cross-culture affiliation .e passing through similar phases in their formation .family life cycle i. occupation.social class: education..BASE FOR SEGMENTATION (.cont’d) • Socio-cultural segmentation .
categorizes consumers in term of product.e rate of usage/awareness/degree of brand loyalty .BASE FOR SEGMENTATION (.. brand or service usage characteristics.cont’d) • Use-related segmentation . i.
e greeting cards. airlines ..Usage of product depends on occasion. drinks.cont’d) • User-situation segmentation . i.BASE FOR SEGMENTATION (.
cont’d) • Benefit segmentation ..BASE FOR SEGMENTATION .e microwave that requires less time to prepare meals .Rewarding consumers with product benefits i.
BASE FOR SEGMENTATION (.Combination of two or more exciting segmentation variables.cont’d) • Hybrid segmentation . commonly done by marketers ..
• Types of Hybrid segmentation covered • Psychographic-Demographic Profile • Geo-demographics • VALS .Hybrid Segmentation • Marketers commonly segment markets by combining several segmentations variables rather than relying on a single segmentation base.
. mass media publishers and broadcasters make it possible for advertisers to select media whose audiences most closely resemble their target markets..g. E. Newsweek audience profile-Newsweek Asia .doc offering media buyers such carefully defined dual profiles of their audiences.Psychographic-Demographic Segmentation Widely used in advertising campaigns to answer three questions • Whom should we target • What should we say and • When should we say it.
Geo-Demographic Segmentation This type of hybrid segmentation scheme based on the notion that people who live close to one another are likely to have similar financial means.a and consumption habits. tastes. preferences. . lifestyles.
Claritas-pioneers of clustering . selecting retail sites. designing marketing strategies. • This cluster data is useful for direct mail campaigns. appropriate merchandise mixes.• Clusters are created based on consumer lifestyles. and a specific cluster includes pin codes that are composed of people with similar lifestyles widely scattered throughout the country. to locate banks and restaurants.
Clustering is most useful when an advertiser’s or marketer’s best prospects can be isolated in terms of where they live .
approvals and opinion of others Action oriented-consumers who are driven by a desire for social or physical activity. variety and risk taking .VALS • Draws on Maslow’s Need Hierarchy and concept of social character Three major self-orientations Principle oriented –consumers whose choices are driven by their beliefs rather than their desires Status oriented.consumers whose choices are guided by the actions.
. • Resources include the range of psychological.and lifestyles.• Each of these selforientations represent distinct attitudes. physical. decision making style. demographic and material means the consumer has to draw upon.
.Criteria for Effective Targeting of Marketing Segments • • • • Identifiable Sufficient Stable or growing Accessible (reachable)in terms of both media and cost.
• Studying consumer behavior enables marketers to predict how consumers will react to promotional messages and to understand why they make the purchase decisions they do. .Consumer Research • The field of consumer research was developed as an extension of the field of marketing research.
. • Researchers thought that consumers were logical problem solvers who objectively evaluated the goods and services available to them and selected those that gave them the highest utility at the lowest cost. or situation on consumer decisions. emotion.CONSUMER RESEARCH PARADIGMS • The early consumer researchers gave little thought to the impact of mood.
a Viennese psychoanalyst named Ernest Dichter began to use Freudian psychoanalytic techniques to uncover the hidden motivations of consumers. .• Soon they realized that consumers were not always consciously aware of why they made the decisions they did. • In 1939.
• As a result of Dichter’s work and subsequent research designed to search deep within the consumer’s psyche. . consumer researchers today use two different types of research methodology to study consumer behavior— quantitative research and qualitative research.
and consumer researchers primarily concerned with predicting consumer behavior are known as positivists. • approach is known as positivism.Quantitative Research • Quantitative research is descriptive in nature. . and is used by researchers to understand the effects of various promotional inputs on the consumer. thus enabling marketers to ―predict‖ consumer behavior.
• The research methods used in positivist research are borrowed primarily from the natural sciences and consist of experiments. survey techniques. and observation. • The findings are descriptive. . empirical. and if collected randomly can be generalized to larger populations.
and projective techniques.Qualitative Research • Qualitative research methods consist of depth interviews. findings cannot be generalized to larger populations. • Because sample sizes are necessarily small. . collage research. focus groups. metaphor analysis.
. the researchers who adopt this paradigm are known as interpretivists.• Interest in understanding consumer experiences has led to the term interpretivism.
• They use qualitative research findings to discover new ideas and to develop promotional strategy. and quantitative research findings to predict consumer reactions to various promotional inputs .• Combining Qualitative and Quantitative Research Findings • Some marketers use a combination of quantitative and qualitative research.
Neutrogena is a manufacturer of personal care products for young adults. The company would like to extend its facial cleansers product line. Design a (a) qualitative and (b) quantitative research design for the company focused on this objective. .
test the data and formulate 2. Analyze. Collection and evaluation of secondary data 4. Conduct primary research and collect primary data . Defining the Objective conclusions 3. Designing appropriate Primary Research 5.Consumer Research -Process 1. Defining the Area 6.
. or survey.• Quantitative Research Designs • Three basic designs are used in quantitative research: observation. experimentation.
.Quantitative Research Data Collection Instruments • Data collection instruments are developed as part of a study’s total research design to systematize the collection of data and to ensure that all respondents are asked the same questions in the same order.
for qualitative data. and. attitude scales. . personal inventories. discussion guides.• Data collection instruments include questionnaires.
the researcher has to take into consideration the purpose of the study and the types of data needed. .Qualitative Research Designs and Data Collection Methods • In selecting the appropriate research format for a qualitative study.
projective techniques. they all have roots in psychoanalytic and clinical aspects of psychology.– Although the research methods used may differ in composition. and they stress open-ended and free-response types of questions to stimulate responses to reveal their innermost thoughts and beliefs. • . • The choice of data collection techniques for qualitative studies include depth interviews. and metaphor analysis. focus groups.
Sampling and Data Collection • A sample is a subset of the population that is used to estimate the characteristics of the entire population. respondents are selected in such a way that every member of the population studied has a known. nonzero chance of being selected. . • In a probability sample.
• In a nonprobability sample. specific elements from the population under study have been pre-determined in a nonrandom fashion on the basis of the researcher’s judgment or decision to select a given number of respondents from a particular group. .
– Some studies are commissioned by organizations seeking to justify a particular position. ETHICS IN CONSUMER RESEARCH .• Consumer researchers must ensure that studies are objective and free of bias.
• Researchers seeking to support a predetermined conclusion often do so by using biased samples. manipulating statistical analysis or ignoring relevant information. . biased questions. • Mistreating respondents is another ethical problem.
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