Typal analysis is a powerful tool for determining a structure within a large body of data . By studying and comparing the results of two series of experiments (random typology and typology of random numbers) we have been able to define two coefficients which measure informational content and the amount of structure for a given typology. The usefulness of these coefficients in solving the problems associated with typal analysis is demonstrated.
In order to prepare this paper, we have covered a considerable bibliography, including the conferences at the present seminar. There exist considerable redundancies, and present techniques seem already somehow stabilized, though wide fields of research remain open to mathematical improvements.
The words "Typologyâ and "Segmentation" are now widely known and used by everybody. However, it seems that it is not always easy to give them a clear and precise meaning. The aim of this paper is to try and focus ideas by proposing a tentative definition of these two processes of data handling. This definition should be as formal as possible, that is, independent of any particular method or technique.
The aim of this contribution is the evaluation of clustering techniques from the viewpoint of practical marketing application. Clustering techniques (segmentation methods, grouping methods) are procedures that search for and detect natural groupings of objects (eg. persons) which are described by their values on variables. The requirements that must be met by such methods and the criteria for their evaluation which will be discussed have been shown to be important in the repeated application to practical marketing problems.
Two problems were not satisfactorily dealt with. The first is, "How do you sell the sophisticated techniques of segmentation and typology to management?" The best suggestion came from John Knecht. "You get an American professor to sell for you." The other problem that delegates remained uneasy about was this. After a segmentation study has been carried out and the segments recognised and defined, how may they be recognised as the basis for analysis in subsequent studies? People can be easily located and assigned to groups in terms of demographic criteria; this is not so with parameters that define segments. None of the speakers really came to terms with this problem.
As stated in the programme, the aim of this Seminar was to illustrate and discuss recent trends and experiences in segmentation and taxonomic techniques.
It has become commonplace to note the growing use of sophisticated techniques in processing market research: cluster analysis and segmentation analysis, as well as factor analysis, discriminant analysis, canonical analysis, multivariate analysis of variance and, more recently, multidimensional scaling of perception and preference. Naturally, the results of these different techniques are of more or less satisfactory practical use depending on the degree of skill and acumen of the researcher who uses them. We feel however that disillusions are particularly high in the field which interests us, that which covers the uses of cluster analysis and segment analysis programs. We will attempt here to discern the cause of these disillusions and, if possible, to define a more judicious use of these methods until such time as the statistician perfects them, making them easier for the practician to employ. The analysis of the practical problems encountered in using cluster analysis and segment analysis programs in our company prompted us to sort these difficulties into three classes, which form the structure of my paper. Class 1 comprises the difficulties involved in choosing a method in consideration of the objectives of the research effort. Class II is connected with the methods themselves, and more particularly with the invariance of the results obtained. Class III is connected, we find with a certain ambiguity of the notion of segment as understood by the marketing man on the one hand and the statistician on the other. After dealing with these three classes, I shall conclude by examining a few means now available to get around these difficulties.
Segmentation is one of the four alternative strategies of market planning and analysis. As such, segmentation is not simply a set of analytical-tools and techniques but rather a managerial philosophy or a viewpoint about the market place. The objective of this paper is to examine the relevance of segmentation to marketing problems. In the process, we will contrast segmentation with other strategies of market planning, specify conditions under which segmentation as a viewpoint is useful to marketing problems, and describe the specific marketing mix adjustments necessary to cater the market place in a segmented way.
In that the aim of our research was to help practitioners identify 'early adopters' in the expectation that concentration of marketing effort on them would accelerate market penetration, a factor analysis was undertaken to try and define a set of broad , composite variables which might be used to this end.
Perhaps one of the more fascinating aspects of taxonomy - of classification, that is, seen as a formation rather than as the identification of classes - consists in gradual research by "sifting", known as analysis of the latent structure, with the object of finding out what really lies below the surface of a given phenomenon. Classification, indeed, as we mean it, signifies grouping certain elements together on the basis of a characteristic, of an ensemble of characteristics or attributes particularly suited for grouping them together and, at the same time, distinguishing them from the others.
Readers familiar with the Belson segmentation technique will note some points of similarity: Dr. Belson's method dichotomises the group at the point where the unweighted absolute difference is maximum, while we think that a weighted difference is more appropriate. This will be shown at length later on. In this paper we will briefly review Dr. Belson's segmentation technique, and the one utilised at NCK. We will examine their points of similarity and differences and will then examine the conditions under which these two methods can or cannot lead to similar results, thence to same or different conclusions.
Classification is a core issue in market segmentation. Through the use of relevant criteria, manufacturers are enabled to assess whether or not particular markets are better treated as homogeneous or, rather, as composed of a heterogeneous collection of subgroups, each differentially responsive to alternative product and promotional strategies. Classification criteria can also guide the formulation of these strategies and help in the assessment of their success or failure. This paper provides an overview of the current situation in the area. In doing so it outlines some general issues involved in classifying consumers, discusses some commonly used criteria and indicates possible new developments.