Page 147 - DLIS402_INFORMATION_ANALYSIS_AND_REPACKAGING

Information Analysis and Repackaging

Notes There also exist additional modes of marketing research, which are:
• Exploratory research, pertaining to research that investigates an assumption.
• Descriptive research, which, as the term suggests, describes “what is”.
• Predictive research, meaning research conducted to predict a future occurrence.
• Conclusive research, for the purpose of deriving a conclusion via a research process.

7.5 Market Segmentation

Market segmentation pertains to the division of a market of consumers into persons with similar
needs and wants. For instance, Kellogg’s cereals, Frosties are marketed to children. Crunchy Nut
Cornflakes are marketed to adults. Both goods denote two products which are marketed to two distinct
groups of persons, both with similar needs, traits, and wants.
Market segmentation allows for a better allocation of a firm’s finite resources. A firm only possesses
a certain amount of resources. Accordingly, it must make choices (and incur the related costs) in
servicing specific groups of consumers. In this way, the diversified tastes of contemporary Western
consumers can be served better. With growing diversity in the tastes of modern consumers, firms
are taking note of the benefit of servicing a multiplicity of new markets.

Market segmentation can be defined in terms of the STP acronym, meaning Segment,
Target and Position.

Self Assessment

Multiple Choice Questions:
1. ...... is the process used to determine what products or services may be of interest to customers,
and strategy to use in sales, communications and business development
(a) Business (b) Marketing (c) Shopping
2. ...... helps marketers adapt offerings to meet changing customer needs
(a) Consumer demand (b) Customer driven approach
(c) Constructive critisism.
3. ...... in marketing is used to explain the dependencies of customers’ mutual behaviour.
(a) Herd behaviour (b) Caution
(c) Organisational orientation.
4. ...... involves conducting research to support marketing activities and the statistical
interpretation of data into information.
(a) Orientations (b) Marketing research (c) Herd behaviour
5. ...... pertains to the division of a market of consumers into persons with similar needs and
wants
(a) Herd behaviour (b) Marketing reseach
(c) Market segmentation.

7.6 Marketing Strategy

The field of marketing strategy encompasses the strategy involved in the management of a given
product.

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