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
