Market Understanding:
Market Segmentation

About

When looking at opportunities in a particular market, it is essential to consider that any potential brand will, realistically, not appeal to everyone. Some people will not find your brand relevant at all, that it does not match any of their needs, that they are very loyal to an alternative service, and/or some other reason.

Yet, too often quantitative research takes everyone’s opinions into account in a way that clouds potential insights.

Market segmentation studies are designed to identify which groups are relevant to the opportunities you could consider, and whether there are attributes, such as needs and attitudes, which can help predict interest in what your brand could deliver.

How we can deliver

We use a survey design and analysis process which can be fully integrated into a future marketing programme for your brand.

The survey process involves developing, testing and piloting a questionnaire that can effectively discriminate between different segments. The analysis technique would typically involve a Factor Analysis of attitudes and behaviours to understand the constructs in the market, as well as the use of Discriminate Analysis to identify the most differentiating attitudinal statements.

Cluster Analysis will be used to categorize people into different groups. The effectiveness of the different cluster solutions will be measured against a dependent variable – such as willingness to use/prescribe.

A further output of the segmentation is to provide around “Magic Questions”, along with an assignment algorithm, which would be derived from the research and be used to identify segment membership on an individual basis. This is typically provided online, and can be used as part of an online marketing initiative, and/or for categorization of respondents in future research (particularly communications research).

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