D2C10 Analyzing Market & Identifying Consumer Flashcards Preview

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Flashcards in D2C10 Analyzing Market & Identifying Consumer Deck (16)
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1

What areas should an analysis of the current market involve?

Business health
Current and potential customers
Trends within the particular market
Position of the business within it

2

What is the most common way to analyse the current market?

SWOT:
strengths, weaknesses (internal traits of the particular product or company)
Opportunities, threats (external factors that affect the market as a whole)

3

How can SWOT be used during the marketing campaign?

Strengths and opportunities should be exploited, highlighted in the marketing campaign
Eliminate weaknesses and mitigate threats through marketing (improve poor brand image, lower price to compensate for exchange rate rises etc)

4

What is segmentation?

Identifying the target customers for the product by a set of customer characteristics

5

Why is segmentation necessary?

It would not be profitable to design and produce a specific product for every individual customer
After segmentation, market research could understand the needs and wants of a group of customers with sufficiently similar preferences

6

What are the aims of segmentation?

To choose a group with sufficiently similar preferences and needs to create a meaningful segment that can be targeted by companies
Segment should not be so small with so few potential customers as to make it unprofitable

7

What variables are segmentation based on

Geographic
Demographic
Psychographic
Behavioral

8

List geographic variables

Where consumer live
Urban or rural

9

List demographic variables

Age
Gender
Ethnicity
Family status
Income
Level of education
Occupation
Socioeconomic status: an individual or family’s position in society relative to others based on their income, level of education and occupation

10

List psychographic variables

Lifestyle: people who like to go out to eat and drink, the health-conscious
Personality: people who like to show off wealth or knowledge of wine
Values and belief: vegetarians, people who prefer products that are organic, environmentally friendly or Fairtrade
Interests: those who are interested in wines from a particular country or region

11

List behavioral variables

What benefit they want: quality, value for money, prestige
When do they buy wine: regular, only on special occasions
Where do they buy wine: supermarkets, specialist wine retailers
How often do they buy wine and in what volume
Level of brand loyalty
Level of interest in wine: enthusiast, moderate interest, indifferent
Are they early adopters (people keen to buy new products when they come to the market) or late adopters

12

What kind of people are likely to behave in a similar way according to segmentation variables?

Those who share psychological or behavioural characteristics

13

Define high-involvement and low-involvement consumers

High: those with a deep interest in the wine they drink, keen to try new products and tend to spend more on wine
Low: have little interest in the detail of what they drink, stick to a few products which they know and are unlikely to spend much on the wine they buy

14

Give a method of segmentation used by the wine tourism industry

An attempt by Hall
Wine lover: great interest, great knowledge, high income, high level education
Wine-interested: great interest, moderate wine knowledge, university-educated, moderate income
Wine curious: moderate interest, limited knowledge, moderate income, medium level of education; see wine as an opportunity to maintain social relations

15

What is one common disadvantage of all existing segmentation models?

They tend to be the result of academic studies with relatively small sample size
Do not readily extend to the market as a whole

16

List the US portraits based on the segmentation model of Wine Intelligence (2016)

Experienced explorers
> 35-54, higher spenders; wine allows them to relax or socialise, a regular treat; drink a large repertoire, enjoy new styles / regions

Millennial treaters
> younger, frequent adventurous drinkers; wine part of their social lives, good for their image; open to large repertoire and exploring new styles/regions, but limited brand awareness

Premium brand suburban
> frequent 'core' drinkers, across all age groups; wine is frequent treat at end of day; looking for good value everyday wine, and know their brands

Bargain hunters
> older drinkers, looking keenly at price; drink infrequently, mainly at home; stick to 'easy choices' in terms of brands and varietals

Senior sippers
> older, less frequent wine drinkers, low spenders, unconfident, unknowledgeable; think wine is affordable and healthy choice for occasional drink; drink a narrow repertoire driven by low prices

Kitchen casuals
> middle-aged or older, infrequent wine drinks, disengaged; drink to relax at home with informal meal; drink a narrow repertoire driven by low prices