Market research week 10

The process of dividing a customer base into groups with similar needs, interests, or buying habits is called _____.

Market segmentation

What is the primary goal of companies using market segmentation?

To understand customers better and sell the right products to the right people.

In market segmentation, the 'Core Idea' is to move companies away from guessing and toward _____.

Targeting

How does market segmentation help a company achieve the 'Right Message'?

By reaching customers with content relevant to their specific needs and lifestyle.

What is the benefit of market segmentation regarding the 'Right Product'?

It allows companies to design products that genuinely fit what each segment needs and can afford.

According to the course material, how did AirAsia and Singapore Airlines both achieve success through segmentation?

By focusing on one specific segment (low-price vs. premium) extremely well.

Which type of market segmentation focuses on measurable characteristics like age, gender, and income?

Demographic segmentation

Why is demographic segmentation considered a common and practical approach?

The data is often easy to collect and analyze.

What is a significant competitive disadvantage of relying solely on demographic segmentation?

Competitors can easily copy the approach.

In demographic segmentation, income and education are key variables because they indicate _____.

Purchasing power and lifestyle preferences

Which type of market segmentation categorizes customers based on their purchase history, brand loyalty, and habits?

Behavioral segmentation

What is the hidden purpose of supermarket loyalty cards in behavioral segmentation?

To collect data on customer buying habits.

Which segmentation approach identifies what customers truly value and need most?

Attitudinal and Needs-Based segmentation

Why is needs-based segmentation often the most difficult type to research?

It is often the most expensive and complex to conduct.

What are 'trade-off exercises' in the context of needs-based research?

Exercises where people rank features or choose between different product combinations.

In the airline needs segment example, what is the primary need of a 'frequent, budget' traveler?

To get to the destination cheaply.

In the airline needs segment example, what defines an 'occasional traveler's' need?

They will choose whichever airline serves the specific route.

Which segmentation variable is specific to Business-to-Business (B2B) markets?

Company size (small, medium, or large enterprise).

Besides company size, what are two other key variables used in B2B segmentation?

Industry/Geography and Growth potential.

What is the primary advantage of using a 'Hybrid' segmentation approach?

It creates richer customer profiles that are harder for competitors to replicate.

Effective segmentation research typically combines both qualitative and _____ methods.

Quantitative

Which statistical tool identifies relationships between variables, such as finding that beer buyers often buy peanuts?

Factor Analysis

Which statistical tool identifies groups of people who share similar characteristics about a product?

Cluster Analysis

What is a 'pen portrait' in marketing strategy?

An imaginary, typical example of a segment that is easy to understand.

In the bedsheet case study, what are the primary buying priorities for 'Sokha', the Budget Family Buyer?

Price, durability, and easy care.

In the bedsheet case study, what influences 'Dara', the Young Professional, before making a purchase?

Online reviews and the desire for a stylish appearance.

In the bedsheet case study, what characterizes 'Sreyneang', the Luxury Buyer?

She views bedding as an investment and is loyal to trusted quality brands.

Which bedsheet segment prioritizes hypoallergenic and cooling fabrics due to health concerns?

Kalyan (Health and Wellness segment).

What defines 'Lina', the Student Buyer, in terms of bedsheet preferences?

A tight budget and influence from social media.

What is the priority for 'Riverside Guesthouse' as a B2B buyer of bedsheets?

Bulk purchasing, durability, and stain resistance.

Who authored the book 'The Fortune at the Bottom of the Pyramid'?

C.K. Prahalad

The 'Bottom of the Pyramid' (BoP) refers to roughly how many people living on low incomes?

Four billion

What was C.K. Prahalad's central argument regarding poor populations?

They should be viewed as consumers and participants in markets rather than just aid recipients.

Why do businesses often ignore the 'Bottom of the Pyramid' market?

Because individual spending is small, despite the total market being very large.

What is one reason poor people often pay more for services than wealthier consumers?

They lack access to efficient markets (e.g., buying water from vendors instead of pipes).

To serve the 'Bottom of the Pyramid' successfully, businesses must redesign products to be affordable, accessible, appropriate, and _____.

Durable

Give one example of product innovation for the Bottom of the Pyramid mentioned in the text.

Single-use shampoo packets in India.

Prahalad argued that companies can improve quality of life and earn _____ at the same time.

Profits

Which concept popularized by Prahalad refers to business models that include the poor as consumers or producers?

Inclusive business

Sometimes segmentation research is used for the negative purpose of deciding _____.

Who NOT to market to.

What is the definition of 'Firmographics' based on the summary slide?

Segmentation based on the characteristics of a company or organization (used in B2B).

Concept: Behavioral Targeting

Definition: Advertising to consumers based on their actions, such as previous travel or purchase history.

Why is 'Geography' an important variable in B2B segmentation?

It identifies where a business operates, affecting logistics and local needs.

In the supermarket example, if data shows peanut buyers often buy beer, how can the store use this?

By promoting beer to peanut buyers and vice versa.

What role does 'Growth Potential' play in B2B segmentation?

It helps companies identify which clients might expand and become long-term partners.

How does segmentation improve a company's 'Competitive Advantage'?

By allowing the company to focus on the specific customers they can serve better than anyone else.

What is the 'Poverty Premium' implied by Prahalad's example of informal lenders?

Poor people paying much higher interest rates than those with access to formal banks.

According to the summary, segmentation studies always begin with a _____.

Clear objective

Why is Factor Analysis useful for saving money on advertising?

It identifies specific groups likely to buy a product, avoiding the need for broad, expensive ads.

Which segmentation type is most likely to use qualitative research methods in B2B situations?

Needs-based or Attitudinal segmentation.

What characteristic must a segmentation group have to be considered 'meaningful'?

People in the group must share similar needs, interests, or buying habits.

How does the 'Toy Store Example' illustrate the core idea of segmentation?

By showing that a single store serves groups (toddlers vs. teens) that want completely different things.

In the BoP framework, what is an example of expanding access to 'Energy'?

Providing low-cost solar or clean cooking solutions to low-income populations.

Why is it important for researchers to communicate segmentation findings using visual customer profiles?

To convince salespeople who may believe they already know their customers perfectly.

In the airline needs segment, what is the 'Premium traveler' looking for?

An upgraded experience.

The Druk Air/Naropa University story is an example of _____ in action.

Behavioral targeting

What is the relationship between 'Segmentation' and a company's 'Niche'?

Segmentation helps define the specific niche a company occupies in the market network.

Which demographic variable focuses on the structure of the household?

Family (or Family life cycle).

In the BoP case study, Prahalad argued that poor people are already _____.

Paying for products and services.

Which statistical technique would a mobile phone company use to group 'technology enthusiasts' together?

Cluster Analysis

In the refrigerator example, what are considered 'Must-have features'?

Correct size and reliable quality.

In the refrigerator example, when do 'Nice-to-have features' like color or energy efficiency matter?

When several products already meet the basic requirements.

According to the BoP case study, serving poor populations provides both a business opportunity and a _____ opportunity.

Development

What is the primary lesson from the 'Who Buys Bedsheets?' slides?

The same product can mean something completely different to different buyer segments.

Good marketing speaks to _____ at a time.

One segment