Market research starts with the question to which answers are sought. Tools and techniques determined by question and what data is needed. The provided information is then fed into the Marketing Information System and analysed to aid decision-making.
Few, if any, markets are truly homogenous. Segmentation subdivides an heterogeneous market into smaller and more homogeneous group based on similarities like characteristics, requirements and behaviour. This increases the likelihood of a similarity in their response to marketing stimuli and ensure that the needs and wants of each segment can be better served.
o MEASURABLE - differentiable o ACCESSIBLE – outreach o SUBSTANTIAL – profitable volume o STABLE – not a fad
i. BusinessPersonal Characteristics (risk attitude, loyalty) ii. Purchasing Variables (policies, functionality, criteria) iii. Operating variables (technology, user status, capabilities) iv. Demographics (industry, company size, location)
v. Situational Factors (urgency, order size, usage)
i. Geographic ii. Demographic iii. Psychographic (social class, lifestyle, motivation, personality) iv. Behavioural (occasion, benefits sought, attitude)
i. Political ii. Economic iii. Cultural
It is impossible for any organization, no matter their resources, to serve all possible segments within a market and do it better than the competition within that segment
Targeting is the process of evaluating each segment within a market to determine its actual or potential attractiveness to business and before selecting to enter and serve. SELECTION CRITERIA o End-user’s needs and wants o Market size/structure/ lifecycle stage o Competitors Mkting Strategy o Downside risks o Intensity of competition o Production, EOS
TARGETING STRATEGY o Undifferentiated/ Differentiated / Niche / Micromarket
** BCG Grid Matrix (Market share - real growth rate)
Portfolio planning model at a glance. Limited because it overlooks other factors of competitive advantage and assumes each business unit is independent of the others. Good tool to start discussions.
**DPM Directional Policy Matrix (Business Strength – Mkt Attractiveness)
- evaluate the relative merits of individual products or product groups
– assess the relative merits of market segments
Customers subconsciously evaluate alternatives when exposed to new marketing stimuli. Positioning is the active process of…