D2C10 Analyzing Market & Identifying Consumer Flashcards
What areas should an analysis of the current market involve
Business health
Current and potential customers
Trends within the particular market
Position of the business within it
The most common way to analyze current market
SWOT:
strengths, weaknesses (internal traits of the particular product or company)
Opportunities, threats (external factors that affect the market as a whole)
How can SWOT be used during the marketing campaign
Strengths and opportunities should be exploited, highlighted in the marketing campaign
Eliminate weaknesses and mitigate threats through marketing (improve poor brand image, lower price to compensate for exchange rate rises etc)
What is segmentation
Identify the target customers for the product through a process known as segmentation
Why is segmentation necessary
It would not be profitable to design and produce a specific product for every individual customer
After segmentation, market research could understand the needs and wants of a group of customers with sufficiently similar preferences
Aim of segmentation
Choose a group with sufficiently similar preferences and needs to create a meaningful segment that can be targeted by companies
Segment should not be so small with so few potential customers as to make it unprofitable
What variables are segmentation based on
Geographic
Demographic
Psychographic
Behavioral
List geographic variables
Where consumer live
Urban or rural
List demographic variables
Age Gender Ethnicity Family status Income Level of education Occupation Socioeconomic status: an individual or family’s position in society relative to others based on their income, level of education and occupation
List psychographic variables
Lifestyle: people who like to go out to eat and drink, the health-conscious
Personality: people who like to show off wealth or knowledge of wine
Values and belief: vegetarians, people who prefer products that are organic, environmentally friendly or Fairtrade
Interests: those who are interested in wines from a particular country or region
List behavioral variables
What benefit they want: quality, value for money, prestige
When do they buy wine: regular, only on special occasions
Where do they buy wine: supermarkets, specialist wine retailers
How often do they buy wine and in what volume
Level of brand loyalty
Level of interest in wine: enthusiast, moderate interest, indifferent
Are they early adopters (people keen to buy new products when they come to the market) or late adopters
What kind of people are likely to behave in a similar way according to segmentation variables
Who share psychological or behavioral characteristics
Define high-involvement and low-involvement consumers
High: those with a deep interest in the wine they drink, keen to try new products and tend to spend more on wine
Low: have little interest in the detail of what they drink, stick to a few products which they know and are unlikely to spend much on the wine they buy
Give a method of segmentation used by the wine tourism industry
An attempt by Hall
Wine lover: great interest, great knowledge, high income, high level education
Wine-interested: great interest, moderate wine knowledge, university-educated, moderate income
Wine curious: moderate interest, limited knowledge, moderate income, medium level of education; see wine as an opportunity to maintain social relations
What is one common disadvantage of all existing segmentation models
They tend to be the result of academic studies with relatively small sample size
Do not readily extend to the market as a whole
