Advanced Marketing Solutions For Strategic Decision-Making

Advanved Research Solutions For Strategic Decision-Making

Advanved Research Solutions For Strategic Decision-Making

THE MARKETING ANALYSTS is concerned with helping clients identify, select and implement successful marketing strategies.   Our intent is to provide our clients with advanced research solutions to improve the quality of strategic decision-making.

Clearly, the right strategic decision-making produces the positive outcomes that every organization seeks.  However, wrong decisions may produce disastrous results.  As example, here are some startling statistics from well-known American retailers:

•             1990 – 2004         Circuit City grew from $2 billion to $9.75 billion.  Five years later, the company filed for bankruptcy.

•             1930’s   Sears Roebuck and Montgomery Ward were about equal in sales and profits.  Twenty years later, Sears was about three times larger than Montgomery Ward.  In 2001, Montgomery Ward closed all of its remaining stores.

•             1991       Walmart surpassed Sears and Kmart to become the largest US retailer.  Today Walmart is the largest retail company in the world and is becoming one of the largest grocers in the US.

While these examples are dramatic, every organization is affected by strategic decisions. Thus every company must plan and act strategically.  You can uncover the information you need through numerous ways—from online research to focus groups to predictive models.  With effective market research, we can help you determine the need for your service or a product’s likelihood to sell, target-market demographics, and determine desirable store locations. To help you meet your target market’s needs, we offer a leading collection of tools, resources and professionals.

THE MARKETING ANALYSTS can help you.

Conjoint AnalysisMarketing Mix ModelsBrand MapsMarket SegmentationProduct Line ManagementSales ForecastsAdvertisement OptimizationData MiningMarket Basket AnalysisCustomer Retention/Predictive Customer Churn

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Developing Customer Profiles: The First Step in Market Segmentation and Target Marketing

Modeling Customer Behavior for Segmentation and Target Marketing

Before you design your next marketing campaign, you should consider the ideal customer that you want to target.  To maximize effectiveness and ROI, your marketing collateral should target the right audience, with the right offer and be delivered through the right medium.   However, knowing the best offer, storyline, theme, length and medium to use requires in-depth knowledge about your target.  Gaining this level of knowledge often requires marketing research and the aid of predictive marketing analytics.

Where do I start?

Without much effort, many companies can identify a number of good marketing segmentation variables.  For example, direct mail marketers might identify demographic and psychographic factors.   Marketers that are more sophisticated might apply a crude RFM model.  RFM models have been around for years.  In short, RFM is based on the premise that the people who bought from you recently are more likely to respond to new offers than people who made a purchase in the distant past.  Large financial institutions will likely take the RFM approach a step further by combining data purchased from external suppliers.  Next, genetic algorithms are trained to classify customers into groups based on their propensity to use a particular product or respond to specific types of offers.

Unsure Where You Should Start? . . . Spend A Day With Your Customers

If you are unsure where to start, then you need to connect with your customers.  You need to be in front of your ideal customers as much as possible to understand them.  While you can easily conduct a survey, it is often better to start by “spending a day” with your customers.  Try to figure out what your customers do in the morning, noon and at night.  Can learn more about them by follow them online through social media circles?

Surveying Your Customers

If you decide to conduct a survey, you might consider collecting the following types of data.

  • Demographic Factors: Age/lifecycle, income, disabilities, mobility (in terms of travel time to work or number of vehicles available), educational attainment, home ownership, employment status, and even location
  • Socioeconomic: Disposable Income, Memberships to clubs, Vacations, Entertainment patterns, Assets owned, Investments
  • Customer Behavior and usage patterns
  • Risk profiles
  • Profitability of customer
  • Customer tenure

However, collecting this data through surveys will be challenging.  As an alternative, you might consider purchasing equivalent data from information suppliers or coming up with creative ways of capturing this information on your own.

Once you have completed your research, you should know enough about your customers to start developing customer profiles.  When you can start answering the following questions, you are close to developing a segmentation strategy and a predictive model for target marketing.

  • Who is your “perfect customer”?
  • Why does a customer buy (or not buy) your product?
  • Do customers buy from you (or your competitor) for any particular reason?
  • Do customers tend to buy specific products at particular times?
  • How much consideration do your customers give when making these types of purchases?
  • What benefits do they see in your company (or your products)?

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Divide and Conquer with Market Segmentation & Target Marketing

market segmentation & Target Marketing

Market Segmentation & Target Marketing

With over 6.7 billion people in the world, it’s nearly impossible to satisfy everyone with a single marketing mix strategy. With the exception of unbranded, plain labeled package goods that are aimed at the mass market, a marketing strategy that attempts to satisfy everyone is destined to fail.

Many years ago soap manufactures determined the need for special marketing strategies to target individual markets. For example, Dove targets soft skin and Irish Spring promotes extra sex appeal. Therefore, capturing large portions of the market often require that firms use market segmentation strategies and develop custom marketing mix strategies to target market each segment.

What is Market Segmentation?

Market segmentation is the process of dividing the total market into several homogeneous groups. By adjusting a marketing mix strategy for a specific market segment, companies can focus on satisfying the needs of specific portions of the target market.

THE MARKETING ANALYSTS use advanced multivariate statistical analysis to segment markets. Often, our segmentation techniques will combine demographic, psychographic, geographic and perceived product benefit data to identify homogeneous customer groups. By doing so, we provide marketers with better information to target, attract and capitalize on similarities within a segment.