Page 98 - DMGT554_RETAIL_BUYING

Unit 7: Consumer Analysis

A logical sequence is to first research and analyzes what consumers think, feel, and do relative Notes
to a company’s offerings and those of competitors. In addition, an analysis of consumer
environments is called for to see what factors are currently influencing them and what changes
are occurring. Based on this research and analysis, a marketing strategy is developed that involves
setting objectives, specifying an appropriate target market, and developing a marketing mix
(product, promotion, price, place) to influence it. After the target market has been selected based
on careful analysis of key differences in groups of consumers, marketing strategies involve
placing stimuli in the environment that hopefully will become part of the target market’s
environment and ultimately influence its members’ behavior.
Consumer research and analysis should not end when a strategy has been implemented, however.
Rather, research should continue to investigate the effects of the strategy and whether it could be
made more effective.

Example: Although AriZona Beverages implemented a successful strategy for selling its
products, it tried to increase its market share by using squeezable sports bottles with a nozzle
like the ones athletes use to guzzle on the run.
Thus, marketing strategy should involve a continuous process of researching and analyzing
consumers and developing, implementing, and continuously improving strategies.



Caselet Customer Analysis

sing predictive analysis, this international computer manufacturer gained the
information needed to clearly identify prospective clients, particularly those
Uwho were already using a competitor’s products but might be ready for a change.
In the highly competitive computer industry, this client gained a competitive advantage
for winning the market share war.
Business Needs
 Identify prospective customers, particularly those who may already be using a
competitor’s products but who have not realized expected product performance.
 Determine under what conditions those prospects selected a competitive product.
 Understand how to best deploy marketing resources and sales efforts to realize
increased category sales and market share gain.
Solution
Edison Group analysts conducted a market survey of 100 prospects currently using a
competitor’s products. These prospects were asked approximately two dozen questions to
access their decision factors in product purchase decision-making.
By applying adaptive pattern recognition to the survey results, Edison Group analysts
were able to:
 Segment prospective customers into seven profiles and identify the distinct business
factors driving each group’s behaviors.

 Identify distinct groups of customers each with high potential for purchase but
differing purchase motivators.
Contd...

LOVELY PROFESSIONAL UNIVERSITY 93