Our group felt that in the papers given at the Seminar too much emphasis has been put on the evaluation of below-the-line activities. Our second point concerned the subject of market segmentation. We would like to know how to go about tracing people, belonging to market segments that are based on psychological rather than social-economic criteria.
Market segmentation has during the past few years been an intensively discussed topic. The discussion has, however, caused a clarification of thinking and a more effective utilisation of various methods. Market segmentation has so far proceeded in two directions. With a rough generalisation these two directions could be described as follows: - Segmentation of consumers to mutual exhaustive groups by using some clustering method as for example Belsons or Morgan-Sonnquist's segmentation analysis, typology analysis, Q-type factor analysis, etc . - Segmentation of products or examination of the structure of a market as perceived by consumers. This has mostly been done by using geometric spatial models, so called brand maps . These main directions of market segmentation have in some sense been seen competing with each other. And yet these two ways of thinking should necessarily be regarded as one entity. For, it can be noticed that as soon as we "forget" one of them, our idea of the other also weakens .
The paper shows what happens when a company selling an industrial product to a small, closely-knit market looks beyond this immediate market to the much more complex and fragmented market which originates the demand for the product. The survey had two separate objectives. The first was to quantify the present market for coated paper by type of paper and by end-use and then to forecast the growth of each segment of the market up to 1974. The second, and in many ways the more important and interesting, objective was to improve the company's understanding of this market by establishing how coated paper is bought and sold, who specifies the quality of coated paper and what factors are likely to influence future developments. The paper shows how far both objectives were achieved, quoting the actual results of the survey. The paper also shows how a survey such as this can benefit a supplier by increasing the range of personal contacts for forecasters, planners and research personnel to follow up, and can improve relations between a company and its customers.
The aim of market research is to classify the individuals into as homogeneous groups as possible according to their common features in the social structure and according to their consumer orientation and to find out the formation and workings of these groups; to identify the lines of communication inside and outside these groups. We speak about segmentation of the market.
This study deals with doctors perceptions, images, attitudes, behaviour and usage habits as they are related to the subject of "Imported vs. Local Drugs". The study was conducted on a personal interview basis with a sample of 400 regular practitioners, randomly selected from the total doctor population in Israel. The subject areas included in this study were: A. Awareness of attitude towards Israeli made drugs vis a vis imported ones (towards the industry as a whole, separate companies and also separate marketing problems); B. How doctors see themselves professionally; C. Exposure and attitudes towards advertising and promotional mix; D. Professional & demographic background.
From the commencement of this seminar the question arose as to how to define the concept segmentation . The definition of concepts seems to me to be a basic duty. Doubtless there is a time when it is unnecessary, or even harmful. Such a case is when a new field of research is being outlined, when new techniques of analysis are being created. Then it is better to leave the coast clear for creative imagination. But at the point to which we have advanced, when research is reaching full maturity, clarification of concepts is necessary. Ambiguity at that level causes misunderstanding and puts a brake on the expansion of research. Now, the concept of segmentation conceals a twofold ambiguity. Some confusion is apparent between segmentation techniques and market segmentation, and also between segmentation and typology.
I would like to comment on a few major points of interest as raised by the papers of the last two days. Firstly marketing models. Segmentation and typology of doctors seem to be of universal interest.
An inductive approach is presented in this paper. This approach involves the following stages: The detailed discussion of a study which attempted to identify different market segments to which four separate retail establishments have been catering; the construction of what is termed a segmentation Index; the analysis of universality of the segmentation Index ; and finally the construction of a logical flow model as a guideline for development of a segmentation Index. The largest section of this paper which is the detailed discussion of an empirical study is based on an analysis of the characteristics of typical customers of four retail stores in buying wall-to-wall carpeting. The present article offers a brief discussion of the criteria that can be used for segmentation, the findings of a field study are presented, and finally, an attempt is made to measure the segments on the basis of an index and to focus upon the role of segmentation in the struggle for survival.
For the two segmentation models, factor analysis and cluster analysis, general assessment criteria are laid down and the marketing view-point is singled out as the most important. In particular the paper deals with the two segmentation methods with regard to the consequences for interpretation inherent in the model. A practical example in the sphere of housekeeping is used to demonstrate a way of determining attitude types using both cluster analysis and factor analysis. Three principles of type allocation are proposed. This also provides a method of estimating the proportions of the consumer population belonging to the various types. It is stressed that both methods are able to provide valuable information for marketing.
For the two segmentation models, factor analysis and cluster analysis, general assessment criteria are laid down and the marketing view-point is singled out as the most important. In particular the paper deals with the two segmentation methods with regard to the consequences for interpretation inherent in the model. A practical example in the sphere of housekeeping is used to demonstrate a way of determining attitude types using both cluster analysis and factor analysis. Three principles of type allocation are proposed. This also provides a method of estimating the proportions of the consumer population belonging to the various types. It is stressed that both methods are able to provide valuable information for marketing.
Market segmentation is a diffuse topic, embracing a wide range of issues. This paper discusses a number of these that have arisen in work carried out by the author during recent years. She main theme of the paper is the need to preserve a flexible and eclectic approach in what are still early days of development. The basic rationale behind segmentation is the increasingly recognised point that consumers differ in ways that are exploitable by marketing and advertising strategy. It is thus important to analyse consumer data in terms of relevant criteria. These classifications should both increase our understanding of the market, and also be reproducible in other research enquiries. The main criteria used in segmentation studies have been behavioural, demographic, personality, and, most recently, attitudinal. The paper stresses the importance of taking an empirical approach to identifying target groups, and the need for using multiple criteria, to take account of the variety of factors influencing consumer decisions. The advantages and disadvantages are discussed of some of the main techniques used in segmentation. The methods of numerical taxonomy are particularly promising, as they take into account the interaction between different combinations of variables. Although the main focus of this paper is upon deriving target groups, the value of segmentation in terms of consumer perceptions of product differences is emphasised. So is the need to adopt a dynamic approach to segmentation, both by paying attention to the cyclical nature of the consumer decision process, and by examining the differential response rates of different market segments.