Presentation 2 of 4
- 1. Session 2: Consumer Market Analysis - Developing Your Ideal Consumer Profile Presented by Niels Brock California International Business University Innovation & Entrepreneurship Week
- 2. TREND • A general direction in which something is developing or changing. “An upward trend in sales and profit margins" • Synonyms: tendency, movement, drift, swing, shift, course, current, direction, progression, inclination, leaning CONTEXT • The historic, cultural, societal, economic, political, consumer, trend, and other environments that impacts the demographic, psychographic and behavioral profile of consumers.
- 3. Consumer Trends (CONTEXT) The Contextual Drivers of Trend… • Demographics • Social – Communications, Interaction, Influence • Cultural – Norms, Folkways • Popular Culture – Music, Entertainment, Arts, Celebrity
- 4. Consumer Trends (CONTEXT) The Contextual Drivers of Trend… • Media – Programming, Consumption, Usage, Influence • Consumerism – Product, Service, Appeals • Peers – Influence, Sharing, Awareness, Validation • Merchandising & Retailing – Consumption, Motivation
- 5. Consumer Trends (CONTEXT) The Contextual Drivers of Trend… • Marketing & Advertising – Awareness, Interest, Decision, Action • Legislation – Enabling Forces, Rules, Regulations • Political – Narrative, Focus, Commitment • Geo-Political – War, Peace, Economic Growth, Struggle
- 6. The Art of Segmentation What • The process of determining where significant differences between groups of consumers exist, dividing those consumer segments sharing similarities, and approaching the development and application of Product, Price, Place, and Promotion along the lines of these differences. Why • The world is not flat – It is increasingly diverse • A Consumer’s unique taste is now reinforced by the validation of others with similar taste • Consumers demand being treated as individuals • Specialization & customization are becoming once again the norms (Not since the industrial revolution has mass production been under such a threat)
- 7. The Art of Segmentation Sample – Nielsen Data
- 8. The Art of Segmentation Sample Segment
- 9. The Art of Segmentation Lifestyle Segment
- 10. The Art of Segmentation Lifestage Group
- 11. Consumer Demography Look at demography as a foundation for segmentation, determining, where, when, how, how often, etc. for product, price, place, and lesser so promotion. • Age • Gender • Ethnicity • Social Status – Economic Strata • Education – Career – Work – Trade • Family Makeup – Marital Status – Children • Urban, Suburban, Rural
- 12. Context We must consider the target consumers formation using past experience (the consumer lives through a context past & present) (Example – Slide #3), examples of this include: • Ethnicity, religious, cultural • Economic, childhood poverty or wealth • Family formation, divorce vs. stability • Social status of grandparents, parents • Political environment • Educational formation • Media, entertainment, music, arts, access & appreciation
- 13. Life Experience as Context The Archetypes represent the consumers drive based upon personal experience (life context) A) Archetypes of the Preparation Stage - (Dependence) • The Innocent – defined as the pure and trusting part of us that retains faith regardless of personal experience • The Orphan – the part that has been betrayed, abused or abandoned • The Caregiver – the ability to nurture and care for others and ourselves • The Warrior – the ability to protect and defend ourselves and set limits and goals
- 14. The Archetypes represent the consumers drive based upon personal experience (life context) B) Archetypes of the Soul Journey - (Independence) • The Seeker – the need to search for something different, seek meaning, explore and wander. • The Lover – the ability to care, to bond to make commitments and have passion. • The Creator – the ability to open the imagination and bring forth something that never existed before • The Destroyer – the ability to choose to let go and rid yourself of things that no longer support your values Life Experience as Context
- 15. The Archetypes represent the consumers drive based upon personal experience (life context) C) Archetypes of the Return - (Interdependence) • The Ruler – the ability to use all of our resources and to take responsibility for ourselves and others. • The Sage – the ability to attain wisdom, seek truth • The Magician – the ability to change what needs to be changed by acting on our own visions • The Jester – the ability to experience life fully Life Experience as Context
- 16. Consumer Psyche Sample Psychological Traits – Innate dispositions that drive behaviors, thoughts, and emotions, such as: Psyche / Behavior • Fearful / Seeks Security & Safety • Independent / Self Acting & Driven • Confident / Assertive, Communicative, Leads • Open-Minded / Curious & Interested
- 17. Consumer Psyche Sample Psychological Traits – Innate dispositions that drive behaviors, thoughts, and emotions, such as: Psyche / Behavior • Scholarly / Consumer of Information, Educates Others • Selective / Cautious Consumer, Requires Information • Faithful / Trustworthy, Loyal, Defender of Brands/Products • Aggressive / Demanding, Vocal, Advocate or Foe
- 18. Consumer Behavior The active pursuit, rational and irrational decision making, commitment, and follow-through of an individual, such as: • Security & Safety / Purchase When Assured of Credibility & Low Risk • Self Acting & Driven / Purchase & use based upon personal knowledge & confidence • Assertive & Communicative / Purchase with a lower level of influence from others, satisfaction may derive from being first & influencing others
- 19. Consumer Behavior The active pursuit, rational and irrational decision making, commitment, and follow-through of an individual, such as: • Curious & Interested / Seeks Knowledge & Comprehension • Consumer of Information / Able to Critically Reason & Come to a Decision • Trusting & Loyal / Brand Advocate who will share & defend your brand
- 20. Traditional Data Collection Marketplace, consumer, & competitive research using traditional methods such as: Primary • Broad Based Observation • Market Survey • Target Consumer Questionnaire • Point of Sale Monitoring Secondary Data • Industry • Scholarly • Government • Agency
- 21. Contemporary Data Sources The Use of Applications, Social & Interest Based Medias, and Services, such as: • Google Earth – Geography, Topography, Urbanity, etc. • Following/Monitoring of Social or Interest Based Content (Chatter – Passive) • Engagement through of Social or Interest Based Content (B to C – Active Communication)
- 22. Creating Consumer Profile • Creating a Consumer Avatar
- 23. Creating Consumer Profile • Creating a Consumer Avatar Where Do They Live What Do They Like What’s Their Education What’s Their Psyche What Motivates Them What are Their Hobbies What Are Their Hopes What Are Their Fears Do They Lead or Follow What’s Their Discovery Process What’s Their Style / Esthetique What’s Their Mode / Mood
- 24. Creating Consumer Profile • StyleSeek – Big Data & Small Data
- 25. Creating Consumer Profile • StyleSeek – Big Data & Small Data
- 26. Needs & Wants Analysis Needs – Physiological – Innate – Human • Water • Shoes • Computer • Shirt • Transportation Wants – Psychological – Learned – Influenced • Sparkling Water, Evian • Running Shoes, Nike • Laptop, Apple • Dress Shirt, Giorgio Armani • Motorcycle, Harley Davidson
- 27. Product Developing a Value Proposition… • Consumers develop through the Awareness, Interest, Decision & Action phases of cultivation via a process of consideration based upon rational and irrational criteria and influences. • Rational – I need water • Irrational – I want a Perrier While the rational process is based upon physiological needs, the irrational decision making process is strongly driven by psyche and the contextual background of consumers, past experiences, desires, esthetics, etc.
- 28. Product Prerequisites for a Successful Product • Consumer Need & Want • Legally Permissible to Consume • Manufactured & Consumed at Acceptable ‘Cost’ • Marketable & Effectively Marketed (4 P’s) • Accessible When & How Market Requires • Deliverable in an Efficient Manner • Fulfills, Matches or Exceeds Promise • Attracts Loyalty, Advocacy Among Consumers • Innovates. Evolves Ahead of Market Changes
- 29. Place Prerequisites for a Successful Product • Available Conveniently /or/ With Some Sacrifice • Accessible When, Where, and How Consumer Wants • Clearly Offers Benefits in Excess of Cost/Benefit • Personal Selling – Direct & Knowledgeable • Inspiring Merchandising (Display & Trial) • Feedback & Validation (Omnichannel Bridges)
- 30. Place Prerequisites for a Successful Product • Available Conveniently /or/ With Some Sacrifice • Accessible When, Where, and How Consumer Wants • Clearly Offers Benefits in Excess of Cost/Benefit • Personal Selling – Direct & Knowledgeable • Inspiring Merchandising (Display & Trial) • Feedback & Validation (Omnichannel Bridges)
- 31. Price Prerequisites for a Successful Product • Consumer Cost / Benefit Analysis • Pricing Technique Appropriate for Market • Set It & Don’t Forget It
- 32. Penetration Pricing: Set initial prices low at first to quickly penetrate the market. As business develops, gradually raise prices to a more profitable level. Feature low prices and convenience. This is a good pricing technique for generating immediate cash flow. Don’t set the price so low that customers believe your product or service is inferior. Pricing Strategies
- 33. Skimming Pricing: Set initial prices relatively high to recover the initial capital spent developing the product or opening a store. Feature quality, service, and uniqueness. Competition will often force lower prices. Use skimming if you are one of the first out with new technology or are capitalizing on a current trend or fad. Pricing Strategies
- 34. Promotional Pricing: Set special low prices to introduce new products or lines. Consider two-for-one specials, end-of-season sales. Utilize this method to maintain traffic, stimulate demand, or make room for new merchandise. Pricing Strategies
- 35. Promotion
- 36. Passion Cause Marketing & Corporate Social Responsibility
- 37. H&M recently created a beach-themed pop-up shop where 25 percent of all sales proceeds go to support WaterAid. The company placed the shop on the seashore of Scheveningen, a popular seaside resort in The Hague.
- 38. Together with the World Wildlife Federation, on June 23 Coca-Cola unveiled a billboard in the Philippines The living billboard in Manila is made of thousands of Fukien tea plants surrounding the iconic curvy shape of a silver Coke bottle. The project with the CO2-eating plants was created in conjunction with Coca-Cola Philippines’ Live Positively sustainability program.
- 39. On a digital billboard owned by Clear Channel in Times Square (which donated the use of the screen), a message flashed asking passersby to observe a moment of stillness as a way to let the Japanese people know that they are not forgotten. The goal is to reach one million minutes of stillness. No money is being solicited.
- 40. Unicef Tap Project: Dirty water “When You Take Water, Give Water.” In 2007, the UNICEF Tap Project was born in New York City based on a simple concept: restaurants would ask their patrons to donate $1 or more for the tap water they usually enjoy for free, and all funds raised would support UNICEF’s efforts to bring clean and accessible water to millions of children around the world.
- 41. Odwalla’s Haiti Hope Campaign was an attempt by The Coca-Cola Company to raise money for the victims of the earthquake in Haiti.
- 42. Aldo Shoes’ risky AIDS awareness campaign helped boost its market share of young consumers in key markets globally.
- 43. In times of disaster people turn to the most basic of human needs— and one of those is clean clothes. The Tide Loads of Hope program provides relief by means of a mobile laundromat. One truck and a fleet of vans house over 32 energy-efficient washers and dryers that are capable of cleaning over 300 loads of laundry every day.