Market Research and Segmentation Strategies

Posted on Mar 17, 2025 in Business Management and Marketing

Market Share

Market share indicates the proportion of total sales a company has within a market. It’s calculated as follows:

Market Share = (Company’s Sales / Total Market Sales) * 100

Market Research

Market research involves collecting, processing, and analyzing information about the general environment, competition, and consumers.

Phases of Market Research

  1. Definition of the research objective (what you are trying to find out and where you want to go).
  2. Design of the research model (how the investigation will be conducted).
  3. Data collection.
  4. Classification and structuring of data.
  5. Analysis and interpretation of data.
  6. Presentation of results (problem analysis, methodology, analysis, technical results, conclusions).

Primary Data Collection Techniques

  • Survey: Presenting a series of questions to one or more people. This includes:
    • Personal interview
    • Mail survey
    • Telephone survey
    • Email and web surveys
  • Observation: Observing the behavior of consumers and drawing conclusions.
  • Experimentation: Studying consumer behavior by observing their reactions to certain causes.

Environmental Analysis

General Environment Analysis

To conduct a market study, you must analyze the surrounding situation because any change in the environment may affect a company’s decisions. This includes:

  • Legal Environment: Laws and regulations.
  • Technological Environment: Technological improvements.
  • Social Environment: Changes in consumer behavior.
  • Economic Environment: Economic cycles (expansion, recession, crisis).

Competition Analysis

Competition is the group of companies that manufacture or market the same product or service in the same market. To study the competition, you must:

  1. Identify competitors.
  2. Research information about them.
  3. Compare the competition’s situation with that of your company.

Consumer Analysis

Understanding buying habits:

  1. Who purchases?
  2. Where do they purchase?
  3. Why do they purchase?
  4. How much do they purchase?
  5. When do they purchase?
  6. What do they purchase?

Consumer behavior classification according to customer decision-making capacity:

  1. Prescriber: Professionally recommends the product.
  2. Buyer: The person who acquires the product.
  3. Consumer: The one who satisfies a need with the product.

Market Segmentation

Market segmentation is the division of customers into homogeneous groups based on needs.

Segmentation Criteria

  • Demographic: Sex, age, habitat, education, etc.
  • Socioeconomic: Income, consumption opportunities, social class, etc.
  • Psychographic: Personality, lifestyle, value system.

Product Positioning

Product positioning is the image a product has in the mind of the target audience compared to competing products or other products sold by the same company.

Positioning Process

  1. Divide the market according to different segmentation criteria.
  2. Assess the interest the product may have in each segment.
  3. Select the target audience.
  4. Identify positioning possibilities for each selected segment.
  5. Select and develop a positioning concept.

Positioning Needs

  • Effectiveness
  • Security
  • Economy
  • Innovation
  • Prestige

Positioning Strategies

Product-related:

  1. Based on a specific attribute.
  2. Based on the benefits offered.
  3. Based on a comparison with other competing products.
  4. Based on the recommendation of specialists.

Brand-related:

  1. Quality.
  2. Prestige.
  3. Low price.

Examples of actual product positioning:

  • Based on price (high or low).
  • Based on the individualization of the service.
  • Based on effectiveness.
  • Based on emotions.

Marketing Plan

A marketing plan is a document that regulates the company’s overall commercial policy: objectives, concrete actions, and the timeline in which each takes place.

Stages of a Marketing Plan

  1. Situation Analysis and SWOT Analysis:
    • Analysis of activities carried out by the company in prior periods.
    • Study of the environment.
    • Company image, products, industry, etc.
    • Qualification of personnel.
    • Distribution.
    • Competition.
    • Product.
    • SWOT Analysis: Trying to relate a strong point with a business opportunity and avoid a weakness and a threat.
  2. Determination of Objectives:
    • Quantitative objectives.
    • Qualitative objectives.
  3. Elaboration and Selection of Strategies:
    • Defining the target audience.
    • General approach and objectives.
    • Overall assessment of the plan.
    • Designation of those responsible for the plan.
  4. Action Plan:
    • Product.
    • Price.
    • Promotion.
    • Distribution channels.
  5. Budget Elaboration.
  6. Control Methods.