1. CONSUMER RESEARCH &
MARKET SEGMENTATION
Presented By
Amogh Kadam
Dhanesh Gundla
Prathamesh Parab

2.  Most
studies on consumer behavior are based
on a set of beliefs and assumption called
positivism or modernism. Researchers who
support the assumptions of modernism are
referred to the positivists .
 Positivists
research method consist of
experiment , survey techniques & observation.
Consumer Research

3. Consumer Research Methods
Methods of consumer
research
 Primary research
methods
 Advantages and
disadvantages of each
method


4. Two Research Methods
Secondary: use of existing
research already done
◦ Government
◦ Consulting firms
◦ Newspaper and magazine
articles
 Primary: creation of specific
studies to answer specific
questions


5. Primary Research Methods
 Surveys
 Experimentation
 Focus
groups
 In-depth interviews
 Projective
techniques
 Physiological
Measures

6. Planned questions
◦ Open-ended
◦ Closed-ended
 Sample size and
inferences

Surveys
 Forms
◦ Mail
◦ Telephone
◦ Mall Intercept
◦ Computer/Internet
 Biases
◦ Wording
◦ Response
◦ Interviewer

7. Computer/Online surveys
Getting people to follow
instructions
 Opportunities for branching
(contingent questions)
 Sampling frame and response
 Possible emerging
opportunities
 Correlating data on which not
all respondents have
answered the same questions


8. Experimentation
 Real
world relevance vs.
control (internal vs.
external validity)
 “Treatments” and factorial
designs
 Sample sizes and
inferences

9. Focus Groups
 Groups of
8-12
consumers
assembled
 Start out talking
generally about
context of product
 Gradually focus in
on actual product

10. In-depth Interviews
 Structured vs.
unstructured
interviews
 Generalizing to
other consumers
 Biases

11. Projective Techniques
 Measurement of
attitudes
consumers are unwilling
to express
 Consumer discusses what
other consumer might
think, feel, or do

12. Observation

Consumer is observed-preferably unobtrusively-while:
◦ Examining products prior to
making a purchase
◦ Using a product
◦ Engaging in behavior where
the product may be useful

13. Six steps
 Defining the objectives of the research
collecting and evaluating secondary data
designing a primary research study
collecting primary data
analyzing the data
preparing a report on the findings
The Consumer Research
Process

14. Descriptive in nature.
 Enables marketers to “predict”
consumer behavior.
 Research methods include experiments,
survey techniques, and observation.
 Findings are descriptive, empirical and
generalizable.

Quantitative Research

15. Consists of depth interviews, focus
groups, metaphor analysis, collage
research, and projective techniques.
 Administered by highly trained
interviewer-analysts.
 Findings tend to be subjective.
 Small sample sizes.

Qualitative Research

16. MARKET

Market is a physical place where buyers & sellers
gathered to buy and sell goods. Or Collection of
buyers and sellers who transact over a particular
product.
E.g 1. Consumer Market- Soft Drinks, cosmetics, air
travel
2. Business Markets- Infosys, Huwai, BPO’s
3. Global markets- Import & Export companies,
MNC;s
4. Nonprofit & Govt Markets-Temples, Universities,
govt companies

17. Definition

Market Segmentation:
◦ Dividing a market into distinct groups with
distinct needs, characteristics, or behavior
who might require separate products or
marketing mixes.
717
Goal 2: Understand the major bases for segmentation

18. What is Market
Segmentation?
The breaking down or building up
of potential buyers into groups
called
Market Segments
4-18

19. Benefits of
Market Segmentation
1. Identifies opportunities for new product
development
2. Helps design marketing programs most
effective for reaching homogenous
groups of buyers
3. Improves allocation of marketing
resources
419

20. LEVELS OF MARKET
SEGMENTATION
Mass Marketing
Same product to all consumers
(no segmentation)
Segment Marketing
Different products to one or more segments
(some segmentation)
Niche Marketing
Different products to subgroups within segments
( more segmentation)
Micromarketing
Products to suit the tastes of individuals or locations
(complete segmentation)
1020

21. SEGMENTATION-PRODUCT EXAMPLES
SEGMENT MARKETING:
Example: Automobile industry – basic model is same but for A.C ,
power steering, power window buyer has to extra price
NICHE MARKETING :Group of customers seeking a distinctive mix of benefits who are
ready to pay extra premium. Egs :- detergents :- surf excel on
tough stains ,Ezee godrej for delicate clothes . Sanskar ,Shankara
T.V ,TTD(Tiruapti tirumala Devasthanam) – focus on religion &
spiritualism
LOCAL MARKETING:
Ex. – Spiderman 3 was released in 5 different language in India
including bhojpuri.
INDIVISUAL MARKETING:
Ex. Paint companies have started doing this- Asian Paint , Nerolac
, Berger Paints
Arvind mills launched Ruff’n Tuff Jeans, branded ready to sitch

22. SEGMENTATION-PRODUCT EXAMPLES
HYNDAI EONSEGMENT
ROLLS ROYCEINCOME
NICH-HIMALAYA
NICH-SPORTS
CHANNEL
LOCAL
LOCAL

23. The Classic Segmentation Variables for
Consumer Markets & Customer
Population
Geographic
Nations, states,
regions or cities
Demographic
Age, gender, family
size and life cycle,
income
Psychographi
cSocial class,
lifestyle,
or
personality
Behavioral
Occasions,
benefits, uses, or
responses
1023

24. SEGMENTATION-PRODUCT EXAMPLES
 GEOGRAPHICAL SEGMENTATION:
 Ex.- Mcdonalds globally, sell burgers aimed at local markets,
 for example, burgers are made from lamb in India rather then
beef because of religious issues.
 DEMOGRAPHIC SEGEMENTATION:
 Needs and wants change as people ages . Egs :- Nappies for
babies, Toys for children , Clothes for teenagers, Gender
segmentation is used within the cosmetics, clothing and
magazine industry.
 INCOME SEGMENTATION:
 Stores like Big Bazar, Woodland are predominantly aimed at the
affluent market.
 TATA aim their vehicles at price sensitive buyers who require a
bundle of benefits for the price.
 Products and services are also aimed at different lifecycle.
 Holidays are developed for families, the 18-30's singles, and for
those in their 50's. (Kesari Or Mahindra Club)

25. SEGMENTATION-PRODUCT EXAMPLES
 PSYCHOGRAPHIC:
 Lifestyle groups
Yuppie Associations
 Mobile, High valued house/flat, Good Salary, Young
branded car.
 50's , Retired early from profession, Time to spare,
Adventure Seekers
 OCCASIONS
- Archies and Hallmark, cards,
Monaco at tea time.
 BENEFITS – Shampoo for hair conditioning,
cleaning , hair fall defence dandruff control
 USER STATUS- light – medium – heavy user
 LOYALTY STATUS- hardcore loyal , split loyalloyal to 2-3 brand ,shifting loyal, switcher

26. SEGMENTATION-PRODUCT EXAMPLES
DemographicAGE
Gender
Psychographics
OccasionBehavioral
LOCAL