Market Analysis Components

Market Segmentation Involves Four Steps

            Product

Consumer Decisions

Theconsumer decision process intervenes between the marketing strategy, as implemented in the marketing mix, and the outcomes.

Outcomes

Firm Outcomes

Our total Product     &     Competitors total product

• cutomer decision process
• superior value expected
• sales
• percieved value delivered
• customer satisfaction

• Attitudes

Globalization 

Four major world citizens

55%): 

Positive toward international brands, see these brands as higher quality.  Concerned with corporate responsibility toward local country

Prominent in Brazil, China and Indonesia

Rare in US and UK

(23%): 

Positive toward international brands, less concerned about corporate responsibility toward local country

(13%): 

(9): 

give rise tonormsand associatedsanctions, which in turn influenceconsumption patterns.

Cultures are not static.  They typically evolve and change slowly over time.

The numerous values that differ across cultures and affect consumption include:

Other-Oriented Values

Environment-Oriented Values

Self-Oriented Values

Time

The meaning of time varies between cultures in two major ways:

time perspective

time interpretations

Space

Symbols

Colors, animals, shapes, numbers, and music have varying meanings across cultures.

Failure to recognize the meaning assigned to a symbol can cause serious problems!

Relationships

How quickly and easily do cultures form relationships and make friends?

Agreements

How does a culture ensure business obligations are honored? How are disagreements resolved?

Some cultures rely on a legal system; others rely on relationships, friendships, etc

Things

The cultural meaning of things leads to purchase patterns that one would not otherwise predict.

The differing meanings that cultures attach to things, including products, make gift-giving a particularly difficult task.

Etiquette

The generally accepted ways of behaving in social situations.

Behaviors considered rude or obnoxious in one culture may be quite acceptable in another!

Normal voice tone, pitch, and speed of speech differ between cultures and languages, as do the use of gestures.

describe a population in terms of its size, structure, and distribution. 

Disposable income is one aspect of demographics--the rapid growth in personal income in parts of China has led to an overall market explosion!

are widely held beliefs that affirm what is desirable. 

Observable shifts in behavior, including consumption behavior, often reflect underlying shifts in cultural values.

Therefore, it is necessary to understand the underlying value shifts in order to understand current and future consumer behavior.

Self-Oriented Values

Reflect a society’s view of the appropriate relationships between individuals and groups within that society.

Green Marketing

(1) developing products whose production, use, or disposal is less harmful to the environment than the traditional versions of the product;

(2) developing products that have a positive impact on the environment; or

(3) tying the purchase of a product to an environmental organization or event.

is marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause.

Cause-related sponsorship (corporate spending toward CRM) continues to rise, with an increase from $120 million in 1990 to $1.5 billion in 2008

Marketing to Gay and Lesbian Consumers

The gay market is estimated to be approximately 7% of the adult U.S. population, or 15.3 million people over age18.

The purchase power of the gay market has been estimated at $723 billion.

Gender-Based Marketing

Demographics describes a population in terms of:

has identified the following four segments of the mature market:

         - Healthy Indulgers

         - Ailing Outgoers

         - Health Hermits

         - Frail Recluses

Social Stratification

Status dimensions, such as parental status, education, occupation and income, set limits on one’s lifestyle, including one’s residence.

Single-item index

     - Multi-item index

Since an individual’s overall status is influenced by several dimensions, single-item indexes are generally less accurate than are well-developed multi-item indexes

Marketers generally think of these as direct influencers of consumption behavior rather than determinants of status that then influence behavior

Demographics or Social Status?

Social status is largely derived from demographics; that is, one’s income, education, and occupation go a long way toward determining one's social class or status. 

Should marketers use an overall measure of social status (a multi-item index) or a demographic variable such as income?

Unless the marketer is interested in social standing per se, he/she will most likely focus on demographic characteristics as direct influencers on consumer behavior!