ì  Consumer Market Analysis A  Best  Prac+ce  Guide  For  Your  Marke+ng  Strategy  Process  

By:  Wayne  E.  Chen  

©  2011  –  Wayne  Chen  

Learning  Objective  

ì  Look  at  the  consumer  and  their  needs  

ì  Iden+fy  segments  or  groups  

ì  Understand  buying  process  

ì  Evaluate  segments  

ì  Develop  consumer  profile  

Consumer  Analysis  

ì  Consumers  +  Needs  

ì  How  to  iden+fy  segments  ì  How  to  segment  the  

market?  ì  Who  needs  us  and  why?  ì  Who  buys  and  uses?    ì  What  is  the  buying  

process?  ì  High  or  low  

involvement?  

©  2011  –  Wayne  Chen  

Need  Category  

ì  What  is  the  need?  

ì  Who  needs  us?  

ì  Why  do  they  need  us?  

ì  Can  your  product  be  applied  to  other  situa+ons?    ì  Arm  &  Hammer  ì  Uncover  poten+al  market  

©  2011  –  Wayne  Chen  

Who  Buys?  

ì  Who  is  buying?  

ì  Who  is  using  the  product?  

ì  Buyers  can  be  different  from  users  ì  Women  buying  men’s  

underwear  and  socks  ì  Determine  Buyer  &  User  

©  2011  –  Wayne  Chen  

The  Buying  Process  

ì  How  the  product  is  brought  ì  Collect  marke+ng  research  ì  Observe  and  inves+gate  

ì  Why  should  I  care?  ì  Iden+fy  cri+cal  routes  to  

reach  customers  ì  Adop+on  /  Problem-­‐solving  

process  

ì  A.I.D.A    ì  AYen+on,  Interest,  Desire,  

Ac+on  

©  2011  –  Wayne  Chen  

Five  Step  To  Buying  

Awareness   Informa+on  Search  

Evaluate  Alterna+ves   Purchase   Evaluate  

©  2011  –  Wayne  Chen  

Awareness  Buying  

ì  Might  Need  Something  ì  Interest  ì  Problem  ì  Recogni+on  

ì  Realizing  the  need  over  +me  

ì  Accelera+ng  the  buying  process  with  ads  

©  2011  –  Wayne  Chen  

Information  Search  

ì  Product  Informa+on  ì  Sor+ng  out  the  ads  ì  Deciding  what  is  best  ì  Ge]ng  second-­‐hand  

readings  ì  Sampling  the  product  

©  2011  –  Wayne  Chen  

Evaluating  Alternatives  

ì  Which  is  the  best  for  me?  ì  Price  comparison  ì  Quality  comparison  ì  Value  comparison  

ì  Iden+fy  the  influencers    ì  Target  buying  behavior  ì  Promo+on  models  

©  2011  –  Wayne  Chen  

Distribution  Buying  

ì  Where  to  buy?  ì  Store  vs.  Online  ì  Easy  of  purchase  ì  Acceptability  

©  2011  –  Wayne  Chen  

Purchasing  Decision  

ì  Purchase  is  not  always  a  “WIN”  ì  A  trail  period  ì  Time  consuming  purchases  

ì  Reducing  product  risks  ì  Ads  and  videos  ì  Knowledgeable  sales  people  ì  Trial  warran+es  ì  Printed  collateral  ì  Posi+ve  referrals  ì  Product  comparison  

©  2011  –  Wayne  Chen  

Purchase  Evaluation  

ì  Post-­‐purchase  Behavior.      ì  Good  decision  or  Bad?  ì  Physical  or  psychology  

tes+ng  ì  Is  there  a  beYer  

alterna+ve?  

ì  Automobile  evalua+on  ì  Poten+al  and  recent  

buyer  targe+ng  

 ©  2011  –  Wayne  Chen  

Providing  Research  Information  

ì  Consumer  research    ì  Success  &  Improvements  

ì  Ques+ons  ì  What  specific  ques+ons  

do  I  need  answered?  ì  How  am  I  going  to  

leverage  the  informa+on  once  I  aYain  it?  

ì  Wasted  efforts  ac+ons  

 ©  2011  –  Wayne  Chen  

Product  Involvement  Levels  

ì  High  vs.  Low  involvement  assessment  

ì  High  level  risk  ì   High  priced  products  

ì  Benefits    ì  Psychological  reward  

©  2011  –  Wayne  Chen  

High  vs.  Low  Matrix  

Complex  process  

Brand  loyalty  

Experiment  Random  

Seeking  Variety  

Anxiety  Reduc+on  

Baseless  Beliefs  

Cheapest  Random  

Baseless  loyalty  Iner+a  

Significant  Differences    

Few  Differences    

High    

Low  

©  2011  –  Wayne  Chen  

How  To  Segment  

ì  “Who  is  our  consumer?”    ì  Segmented  vs.  Mass  ì  Coca-­‐Cola  vs.  Vitamin  

Water  

ì  Segmenta+on  serves:  ì  Profitability  volume  ì  Efficiently  reached  ì  Develop  marke+ng  

programs  

©  2011  –  Wayne  Chen  

Effective  Segmentation  

ì  Crea+ng  aim  and  efficient  execu+on.  Yielding  most  sales  and  profits  ì  Risk  of  money  and  +me  

ì  Four  major  variables:  ì  Geographic  ì  Demographic  ì  Psychographic  ì  Behavioral  

 ©  2011  –  Wayne  Chen  

Geographic  Segmentation  

ì  Divides  the  market  by    ì  Country  ì  State  ì  Region  ì  Count  ì  City  ì  Neighborhood  

 

©  2011  –  Wayne  Chen  

Demographic  Segmentation  

ì  Demographic  breakdown  ì  Age    ì  Sex    ì  Income  ì  Marital  Status    ì  Family  Life  Cycle    ì  Educa+on  or  Occupa+on    ì  Ethnicity  ì  Religion  ì  Race  

©  2011  –  Wayne  Chen  

Psychographic  Segmentation  

ì  Lifestyle  ì  Ac+vi+es,  Interests  

ì  Personality  ì  Conserva+ve,  

Gregarious,  Risk-­‐taking  

ì  Difficult  to  assess  and  quan+fy  

ì  Generalize  psychological  profiles  

©  2011  –  Wayne  Chen  

Behavioral  Segmentation  

ì  Purchase  behavior  ì  Usage  

ì  Frequency,  Benefits  ì  Purchase  Occasion  

ì  Gij,  Vaca+on,    ì  Brand  Loyalty  

ì  Affilia+on  ì  Responsiveness  

ì  Sales,  Coupons,  and  Rebates  

©  2011  –  Wayne  Chen  

Evaluating  Marketing  Segments  

Measurability  

Accessibility  

Sustainability  

Profitability  

Compa+bility  

Effec+veness  

Defendability  

©  2011  –  Wayne  Chen  

Evaluate    Segments  

ì  Profitability  ì  Poten+al  in  market?  

ì  Compe++on  Compa+bility  ì  Interest  &  Strategy?  

ì  Effec+veness  ì  Adequately  service  this  

segment?  

ì  Defendability  ì  Compe+tor’s  aYack?  

 ©  2011  –  Wayne  Chen  

Evaluate  Segments  

ì  Measurability  ì  Iden+fy  and  quan+fy  

size  

ì  Accessibility  ì  Reach  segment  through  

ads,  sales  force  or  distributors  

ì  Substan+ality  ì  Shrinking,  maturing  or  

growing?  

©  2011  –  Wayne  Chen  

Develop  Consumer  Profile  

ì  Profile  ì  Female,  25-­‐35YO  ì  College  –  Bachelors  ì  Professional  or  business  

execu+ve    ì  No  dependents,  childless  ì  100K  +,  Large  City  ì  European  Car  Owner  ì  Enjoys  Yoga  and  Art  

©  2011  –  Wayne  Chen