{"id":258248,"date":"2023-12-07T13:35:37","date_gmt":"2023-12-07T13:35:37","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=258248"},"modified":"2024-07-31T13:33:20","modified_gmt":"2024-07-31T13:33:20","slug":"market-research-and-market-strategy","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/market-research-and-market-strategy\/","title":{"rendered":"Market Research and Market Strategy: Market, Competition and Business Assessment, Customer Segmentation, Market Positioning"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">Imagine you are the life of the party, and as a result, you are given the task of planning a big party. What is the first thing you do? You start by listing the kind of music, food, and timings your friends prefer. Once you do this, you are all set to go.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In the marketing context, market research depends upon all the information you have been able to collect to make it to the end product or service. In market research, target marketing is the work that you do to sell the product\/service in the best way possible.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Market research helps you figure out what your customers are looking for, and market strategy refers to how you can use that information to sell the product\/service.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">While we are talking about market research and the strategies involving the same, let us quickly dive into a <\/span><strong><a href=\"https:\/\/imarticus.org\/executive-certificate-programme-for-strategic-chief-executive-officers-iim-raipur\/\">CEO course<\/a><\/strong><span style=\"font-weight: 400;\"> which talks about industry standards extensively.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Throughout this blog, we will also touch upon different terms in target marketing, especially the STP (Segmentation, Targeting, and Positioning) factor. Moving ahead, we plan to cover important statistics in target marketing along with the advantages of conducting market research in one\u2019s area of business. Keep reading!<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Understanding Target Marketing and Its History&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">The first known reference to target marketing was recorded around 1960 when Neil H. Borden, a marketer who believed in a few factors, decided to come up with the \u2018marketing mix\u2019, a term that consisted of four different factors: product, promotion, price, and place.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Borden travelled outside his academic bounds to put out a statement that was followed only later into the century. In the 1980s, the 4 Ps were expanded to accommodate other factors namely physical evidence and process.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Here is the timeline of target marketing as seen throughout the years &#8211;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Early 1900s<\/b><span style=\"font-weight: 400;\"> &#8211; Mass marketing era with businesses focusing on mass production and one-size-fits-all targeting<\/span><\/li>\n\n\n\n<li><b>1950s-1960s<\/b><span style=\"font-weight: 400;\"> &#8211; Introduction of market segmentation based on age, gender, and income<\/span><\/li>\n\n\n\n<li><b>1970s &#8211; 1980s<\/b><span style=\"font-weight: 400;\"> &#8211; Introduction of psychographic segmentation divided into lifestyle and values<\/span><\/li>\n\n\n\n<li><b>1990s<\/b><span style=\"font-weight: 400;\"> &#8211; Data-driven targeting makes it to the front with technology focusing on targeted advertisements<\/span><\/li>\n\n\n\n<li><b>2000s<\/b><span style=\"font-weight: 400;\"> &#8211; The digital revolution enables online advertising through targeted campaigns<\/span><\/li>\n\n\n\n<li><b>2010s<\/b><span style=\"font-weight: 400;\"> &#8211; Emergence of big data leads to customer-centric marketing strategies<\/span><\/li>\n\n\n\n<li><b>2020s<\/b><span style=\"font-weight: 400;\"> &#8211; Increased focus on CX and personalised experiences<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Why Companies Segment Consumers<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">To understand why companies decide to segment consumers before moving forward with a particular product or service, we must consider these points &#8211;&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Geography, demographics, psychographics, and behaviours<\/b><span style=\"font-weight: 400;\"> &#8211; Companies tend to segment according to the consumer&#8217;s location, age, gender, lifestyle, opinions, and purchasing habits.<\/span><\/li>\n\n\n\n<li><b>Benefits sought by customer and consumer characteristics<\/b><span style=\"font-weight: 400;\"> &#8211; Deducting what a customer seeks can prove beneficial for companies as they gain insight into factors like convenience, price, and status while aligning products accordingly.<\/span><\/li>\n\n\n\n<li><b>Asking \u201cwhy\u201d, \u201cwhat\u201d, and \u201cwho\u201d<\/b><span style=\"font-weight: 400;\"> &#8211; Companies gain a deeper understanding of consumer behaviour by asking the right questions \u2014why consumers buy, what their purchase behaviour is, and who they are as individuals.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">In asking the questions, focus on &#8211;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><b>Understanding behaviour (Why?) <\/b><span style=\"font-weight: 400;\">&#8211; Analyse past purchases and predict future buying behaviour.<\/span><\/li>\n\n\n\n<li><b>Analysing purchase behaviour (What?)<\/b><span style=\"font-weight: 400;\"> &#8211; Focus on frequency, and monetary value of purchases. Get to understand customer loyalty in this stage.<\/span><\/li>\n\n\n\n<li><b>Segmentation via demographics (Who?) <\/b><span style=\"font-weight: 400;\">&#8211; Use available data from multiple sources like income, education, family income and size, and age to categorise customers.<\/span><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">The Three Stages of Target Marketing<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">The STP model (Segmentation, Targeting, Positioning) is a fundamental framework for target marketing that helps companies to effectively reach their desired target group. The three phases are explained below, followed by brief examples:<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Market segmentation<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Segmentation is a method of dividing the broad market into smaller, more distinct groups based on common characteristics. These can be psychographic, demographic, behavioural or geographic characteristics.&nbsp;<\/span><\/p>\n\n\n\n<p><b>Example: <\/b><span style=\"font-weight: 400;\">A skincare company segments its market based on age groups: teenagers facing acne problems, young adults concerned about ageing, and older adults dealing with sensitive skin issues.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Market targeting<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Market targeting focuses on selecting specific segments from the identified groups. It deals with analysing the appeal of a segment and choosing the best ones. <\/span><strong><a href=\"https:\/\/imarticus.org\/executive-certificate-programme-for-strategic-chief-executive-officers-iim-raipur\/\">CEO training programs<\/a><\/strong><span style=\"font-weight: 400;\"> offer a more comprehensive insight into this topic.<\/span><\/p>\n\n\n\n<p><b>Example<\/b><span style=\"font-weight: 400;\">: A skincare company decides to target young adults. They come to the conclusion that this group is sizable, accessible, and responsive to their skincare maintenance products.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Market positioning<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Market positioning creates an image or perception in the mind of the target audience. As a result, the audience is motivated to pursue the said product or service as opposed to from a different provider. It focuses on UVP (unique value proposition) to differentiate it from other brands.<\/span><\/p>\n\n\n\n<p><b>Example<\/b><span style=\"font-weight: 400;\">: The skincare company positions its anti-ageing products as scientifically advanced, natural, and affordable. Through this, it emphasises its effectiveness in reducing fine lines and wrinkles compared to competitors&#8217; products.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">How Is Value Propositioning Related to Target Marketing?&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Value propositioning is an integral part of target marketing and works in these ways &#8211;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">It aligns with audience needs in addressing the preferences, and their pain points.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">As part of the focused audience rule, it defines the market and allows businesses to diversify.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">It creates a need for differentiation as it sets the brand apart from competitors.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Customer Segmentation<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Customer segmentation enables a deeper understanding of target marketing as it makes it easier for target marketers to devise products according to one\u2019s preferences and choices. Let\u2019s look at the criteria for segmentation.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Segmentation criteria<\/span><\/h3>\n\n\n\n<p><b>Demographic segmentation &#8211; <\/b><span style=\"font-weight: 400;\">A widely used criterion in itself, demographic segmentation divides consumers into different groups based on characteristics such as &#8211;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Age &#8211; Teenagers, young adults, middle-aged, and seniors<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Sex &#8211; Gender identities and personal preferences<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Level of education &#8211; Educational background and levels of knowledge<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Individual income &#8211; Income levels or socioeconomic status<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Family capacity and income &#8211; Marital status, family size, life stage such as parents or empty nesters<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Occupation &#8211; Professions or job types<\/span><\/li>\n<\/ol>\n\n\n\n<p><b>Psychographic segmentation &#8211; <\/b><span style=\"font-weight: 400;\">Psychographic segmentation deals with categorising consumer behaviours based on their psychological traits. These criteria are &#8211;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Personality &#8211; Personality type and its traits<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Lifestyle &#8211; Activities, interests, and hobbies<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Values and beliefs &#8211; Convictions, views, and nature of values<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Attitude &#8211; Loyalty towards a particular brand, social issues, product categories<\/span><\/li>\n<\/ol>\n\n\n\n<p><b>Behavioural segmentation &#8211; <\/b><span style=\"font-weight: 400;\">Behavioural segmentation involves dividing consumers into different brackets based on their behaviours \u2014actions, and patterns of interaction with products and services. Key criteria for behavioural segmentation include &#8211;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Purchase behaviour &#8211; Buying habits such as frequent buyers, non-buyers, or occasional buyers<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Brand loyalty &#8211; Extended loyalty, occasional switchers, or entirely new to the brand<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Timing &#8211; Occasional or seasonal buyer and holiday shoppers<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Usage rate &#8211; Frequency of using a product, distinguishing between light, moderate, and heavy users<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Engagement level &#8211; Engagement with marketing campaigns, social media, and loyalty programs<\/span><\/li>\n<\/ol>\n\n\n\n<p><b>Geographic segmentation &#8211; <\/b><span style=\"font-weight: 400;\">Geographical segmentation is carried out using physical locations and the factors associated with them. Some criteria that one can include are &#8211;&nbsp;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Region &#8211; Continents, countries, states, or more specifics like cities<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Climate &#8211; All climatic zones<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Population density &#8211; Urban, suburban and rural areas<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Population type &#8211; Preferences and lifestyles of urban, suburban, and rural populations<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Cultural preferences &#8211; Cultural nuances, restrictions, and affiliations<\/span><\/li>\n<\/ol>\n\n\n\n<p><b>Needs-based segmentation &#8211; <\/b><span style=\"font-weight: 400;\">Needs-based segmentation involves categorising consumers according to their need-based purchasing patterns. These can be driven by specific needs, desires, and motivations like &#8211;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Pain points &#8211; Challenges associated with personal choices<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Benefits &#8211; Convenience, affordability, and status<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Readiness to adopt &#8211; Adaptability to new technologies or innovations<\/span><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">How Market Segmentation, Targeting, and Positioning Are Co-Related<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Market segmentation, along with targeting and positioning poses a unique mix to targeted marketing. Here is how they are all connected &#8211;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><b>Aspect<\/b><\/td><td class=\"has-text-align-center\" data-align=\"center\"><b>Market segmentation<\/b><\/td><td class=\"has-text-align-center\" data-align=\"center\"><b>Market targeting<\/b><\/td><td class=\"has-text-align-center\" data-align=\"center\"><b>Market positioning<\/b><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Purpose<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Divides the market into different groups based on shared data.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Selects segments to employ focused marketing.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Creates a specific image\/perception of the product or service in the consumer\u2019s mind.<\/span><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Focus<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Derives different customer groups and their unique needs and interests.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Identifies viable segments to target them further.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Devises tailored suggestions and messages to help consumers resonate better.<\/span><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Customisation<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Crafting unique value propositions according to segment results.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Develops strategies for choosing segments.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Creates a UVP aligned with the targeted segments.<\/span><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Marketing strategies<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Guides strategies until they are fully performed.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Adds to resource allocation and management with customised approaches.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Directs communication strategy and messaging to appeal to chosen segments.<\/span><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Decision making<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Makes informed decisions around a product or service coupled with a design and marketing team.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Guides decisions on prioritising certain segments over others.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Influences brand positioning decisions.<\/span><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Customer engagement<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Enhances engagement by addressing pain points and preferences.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Works towards improving chosen segments.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Heightens customer engagement by aligning with their desires and perceptions.<\/span><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Competition<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Provides a space for competition by addressing niche uniquely, at par, and better than competitors.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Focuses approach so potential competitors can be dealt with.<\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\"><span style=\"font-weight: 400;\">Creates a unique market position that sets the brand on a higher pedestal than its competitors.<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Statistics<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Let\u2019s look at some target marketing statistics to evaluate the market. To diversify your scope in marketing, go for a <\/span><strong><a href=\"https:\/\/imarticus.org\/executive-certificate-programme-for-strategic-chief-executive-officers-iim-raipur\/\">certificate course in senior management<\/a><\/strong><span style=\"font-weight: 400;\"> that accounts for multiple marketing tools and techniques.<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">A total of <\/span><a href=\"https:\/\/www.similarweb.com\/blog\/sales\/b2b-sales\/abm-statistics\/\"><span style=\"font-weight: 400;\">56%<\/span><\/a><span style=\"font-weight: 400;\"> of marketers use personalised content to bring in consumers.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">A staggering <\/span><a href=\"https:\/\/www.grenismedia.com\/blog\/45-digital-and-targeted-advertising-statistics\/#:~:text=Here%20are%20some%20stats%20about,were%20content%20with%20seeing%20either.\"><span style=\"font-weight: 400;\">40.5% <\/span><\/a><span style=\"font-weight: 400;\">of people believe in targeted marketing compared to traditional marketing.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Targeted ads are known to increase brand search by a whopping <\/span><a href=\"https:\/\/webtribunal.net\/blog\/targeted-advertising-statistics\/#gref\"><span style=\"font-weight: 400;\">800%<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Google\u2019s ad revenue amounts to a total of <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/05\/18\/how-does-google-make-money-advertising-business-breakdown-.html#:~:text=of%20the%20future.-,But%20Google's%20main%20business%20is%20online%20advertising.,the%20company's%202020%20annual%20report.\"><span style=\"font-weight: 400;\">$147 billion<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n\n\n\n<li><a href=\"https:\/\/www.gwi.com\/reports\/social\"><span style=\"font-weight: 400;\">40%<\/span><\/a><span style=\"font-weight: 400;\"> of internet users reveal that they are loyal to their favourite brands.<\/span><\/li>\n\n\n\n<li><a href=\"https:\/\/www.statista.com\/chart\/18146\/view-of-targeted-online-advertising-among-americans\/\"><span style=\"font-weight: 400;\">27%<\/span><\/a><span style=\"font-weight: 400;\"> of online users use targeted ads for marketing their products.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Targeting using behavioural data amounted to <\/span><a href=\"https:\/\/datadrivenadvertising.eu\/wp-content\/uploads\/2017\/09\/BehaviouralTargeting_FINAL.pdf\"><span style=\"font-weight: 400;\">5.4 times<\/span><\/a><span style=\"font-weight: 400;\"> higher clicks than any other targeted segmentation.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Types of Market Research&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Market research methods are divided into two \u2014primary and secondary. Before focusing on different segmentation factors, these research types represent the process of researching.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Primary market research<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Primary market research happens when companies employ third-party organisations to research available data. It is a combination of both qualitative and quantitative data. In terms of qualitative research, focus groups, and individual interviews are given utmost importance.<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><b>Focus groups <\/b><span style=\"font-weight: 400;\">&#8211; It usually consists of a small group of people (6-10) and involves asking several questions. The goal is to collect complex information that can be carried out remotely. It is a compensatory method as it requires participants to be treated monetarily.<\/span><\/li>\n\n\n\n<li><b>Individual interviews <\/b><span style=\"font-weight: 400;\">&#8211; One-to-one interviews work in a more personal and interactive way. In this type of interview, the interviewee is given open-ended questions to address. The result of these interviews depends on individual experiences.<\/span><\/li>\n\n\n\n<li><b>Ethnographic studies<\/b><span style=\"font-weight: 400;\"> &#8211; The ethnographic research experience focuses on surveying the participant\u2019s location. The interviewer has to note all geographical constraints available at the location. The usual duration for this research ranges from a few days to years.<\/span><\/li>\n\n\n\n<li><b>Telephonic surveys<\/b><span style=\"font-weight: 400;\"> &#8211; This type of research involves using phone calls to gather information from a selected group. This research aims to collect direct feedback and measure customer satisfaction. Some <\/span><span style=\"font-weight: 400;\">CEO training programs<\/span><span style=\"font-weight: 400;\"> describe traditional methods of reaching out to potential participants along with modern targeting programs.<\/span><\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Secondary market research<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Secondary market research focuses on using information from sources outside of the company\u2019s reach. These may include government agencies, forms of commerce, and external informants such as educational institutions.<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><b>Public outlets<\/b><span style=\"font-weight: 400;\"> &#8211; Public sources like libraries are excellent sources of information. Government libraries offer reliable resources without any fee and are viable places for researchers.<\/span><\/li>\n\n\n\n<li><b>Business sources <\/b><span style=\"font-weight: 400;\">&#8211; Commercial sources are incredibly expensive in comparison to its competitors. These may be magazines, journals, local media, and television. Traditionally, these mediums are ideal for the collection of globalised data.<\/span><\/li>\n\n\n\n<li><b>Academic establishments <\/b><span style=\"font-weight: 400;\">&#8211; Educational institutions are a good source of collection of data as the constant production of research papers and technical projects help in realising targets. They offer more content compared to the business and management sector.<\/span><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Steps to Conduct Market Research&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">To understand how to conduct market research thoroughly, go through these steps. To opt for a further understanding of market research, you can also sign up for <\/span><span style=\"font-weight: 400;\">CEO training programs<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Decide a definite approach<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Having a well-defined approach is vital to understanding where and how one wants to approach. These may include planning primary or secondary research and managing funds for the purpose. As for presenting participants with a clear image of the market research, devise a marketing test with all necessary questions, and leave no space for vagueness.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Identify the issue<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Marketing research can be carried out using representative samples using sampling tools. A larger size of participants will require a less elaborate sampling technique. Accordingly, one can base their tools to get the best outcome. All surveys must go through thorough scientific sampling in the form of statistics and probability regardless of their size.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Determine the sample<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">A data collection instrument must be developed by the researchers to carry out appropriate surveys. One unaddressed answer can leave gaps in the research causing errors.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Conduct data gathering<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">An in-depth analysis of data is recommended to obtain a result. Based on this, the data will be considered worthy. Quantitative data can be measured using objectives like age, sex, and profession coupled with the total number of participants.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Evaluate the findings<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">While creating the test report, ensure to follow the inverted pyramid style to obtain results. One can start by answering at the beginning, followed by basics, content, and conclusions.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Reach conclusions<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Market research is paramount in reaching a conclusion and making an informed decision. However, it can be tricky and must be conducted thoroughly without giving leeway to errors. After finding the results, the company\/brand can finally implement their choices into devising the right product\/service for the targeted demographic.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Market Segmentation, Targeting, and Positioning Examples<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Here are a few elaborate examples talking about segmentation, targeting, and positioning in detail &#8211;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Market Segmentation<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Demographic segmentation<\/b><span style=\"font-weight: 400;\"> &#8211; A company decides to divide its customers based on age groups for their skincare line. They offer different products for teens, young adults, and senior citizens. They do so by addressing different skincare concerns for specific skin needs.<\/span><\/li>\n\n\n\n<li><b>Psychographic segmentation <\/b><span style=\"font-weight: 400;\">&#8211; An athletic apparel line that targets active enthusiasts for their brand. Their active lifestyle needs a certain maintenance which is looked after by the product catalogue.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Market Targeting<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Selective targeting <\/b><span style=\"font-weight: 400;\">&#8211; A high-end fashion brand caters to affluent customers only. In this pursuit, they want to showcase luxury branding and pricing strategies for the chosen demographic only.<\/span><\/li>\n\n\n\n<li><b>Niche targeting<\/b><span style=\"font-weight: 400;\"> &#8211; A coffee shop meant for coffee enthusiasts is planning to open a counter that only sells high-quality coffee. Its target audience is based on a demographic that seeks authentic coffee flavours.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Market Positioning<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Product attributes<\/b><span style=\"font-weight: 400;\"> &#8211; A smartphone company leverages its products as one of the most advanced in the market. It highlights its innovative features and competes with other brands directly due to its superior marketing.<\/span><\/li>\n\n\n\n<li><b>Price and quality<\/b><span style=\"font-weight: 400;\"> &#8211; An automobile manufacturer decides to build high-end cars and proceeds to sell them only to the affluent, and prestigious elite. This justifies a premium price tag that consumers are willing to purchase in comparison to standard vehicles in the market.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Case Studies&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">As a targeted marketer, reading case studies is equivalent to being a part of a project from a distance. Let\u2019s discuss notable cases.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Chevrolet DTU by Carol H. Williams (2019)<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">Chevrolet \u201cDTU\u201d is an acronym for Diversity, Talent, and Culture, the three tenets of a campaign created by Carol H. Williams Advertising. Despite declining readership, Williams noticed that print circulation was still on the move. This was coupled with the AA market\u2019s preference for luxury vehicles like the Cadillac Escalade.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">The study aimed to develop a 360-degree media campaign surrounding NNPA(National Newspaper Publishers Association) and Chevrolet\u2019s best features. This bridged the digital gap between AA(African American) audiences by merging both traditional and digital platforms and engaging younger demographics throughout its course.&nbsp;<\/span><\/p>\n\n\n\n<p><b>Key takeaways&nbsp;<\/b><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">Several metrics got a boost including brand recognition, familiarity, and changed perceptions for both Blazer and Chevrolet.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Individuals, especially men with income groups exceeding $100,000 showed a promising demographic for future purchases.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Participants showed their support for Chevrolet\u2019s campaign and HBCU(Historically Black Colleges and Universities) students. A noticeable community involvement within the African-American demographic was also boosted.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Gila Rivers by O.H Partners (2023)<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400;\">O.H. Partners, an advertising agency partnered with their long-term client Gila River Resorts &amp; Casinos to create a reasonable space catering to the youth. They recognised the demographics of young adults and created a \u201cYou Do You\u201d motto-based platform, which addressed people\u2019s unique identities.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In creating the campaign, they included vibrant colours, and aesthetics and even invited some of the young adults to participate. Scholar was hired for production and animation and was accompanied by 750MPH for sound engineering. It also featured New York-based rapper Outasight, whose musical talent was lauded by the team and welcomed into the campaign.&nbsp;<\/span><\/p>\n\n\n\n<p><b>Key takeaways<\/b><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">An integration of animation and real-life elements boosted Gila River\u2019s welcoming atmosphere.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Collaborations with renowned partners like Scholar, Outasight, and 750MPH outperformed the game.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Gila River Resorts\u2019 efforts at diversifying and expanding made the younger demographics engage further.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">The \u201cYou Do You\u201d brand slogan saw a unique brand identity getting explored as Gila River embraced a new slogan.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\">Conclusion<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Market research is a vital tool when it comes to understanding what customers need and tailoring services accordingly. It can also offer a competitive advantage over other brands available in the market. Through segmentation, targeting, and positioning, products and services can align with the goals of the companies while also enhancing relevance and overall appeal.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">To stay competitive in the ongoing market, ensure to maintain a stellar industrial journey. After all, marketing research isn\u2019t just about understanding customers but also predicting their needs and working towards building a relevant service.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Work towards your future today! The <\/span><span style=\"font-weight: 400;\">Executive Certificate Programme for Strategic Chief Executive Officers<\/span><span style=\"font-weight: 400;\"> by IIM Raipur is a certification that is designed for top-level executives and thought leaders. Its primary focus is on honing strategic leadership skills, and fostering a spirit of innovation. Participants can gain exclusive access to complex business tools and strategies through this <\/span><strong><a href=\"https:\/\/imarticus.org\/executive-certificate-programme-for-strategic-chief-executive-officers-iim-raipur\/\">Chief Executive Officer course<\/a><\/strong><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<p>Related Article: <strong><a href=\"https:\/\/imarticus.org\/blog\/roles-and-responsibilities-of-ceo\/\">Roles &amp; Responsibilities of CEO<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Imagine you are the life of the party, and as a result, you are given the task of planning a big party. What is the first thing you do? You start by listing the kind of music, food, and timings your friends prefer. Once you do this, you are all set to go. In the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":265500,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mo_disable_npp":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[4687,4518],"tags":[],"class_list":["post-258248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management-pillar-pages","category-pillar-pages"],"acf":[],"aioseo_notices":[],"modified_by":"Imarticus Learning","_links":{"self":[{"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/posts\/258248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/comments?post=258248"}],"version-history":[{"count":4,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/posts\/258248\/revisions"}],"predecessor-version":[{"id":265502,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/posts\/258248\/revisions\/265502"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/media\/265500"}],"wp:attachment":[{"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/media?parent=258248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/categories?post=258248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imarticus.org\/blog\/wp-json\/wp\/v2\/tags?post=258248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}