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Market Structure and Segmentation Research
Market structure and segmentation research is designed to provide in-depth information about all aspects of a category and assess a brand’s current competitive position, uncover its strengths and weaknesses, and identify new product and positioning opportunities.
This research is applicable prior to strategy planning, after a dramatic shift in the marketplace (e.g. emergence of strong competitive threat), or to enhance sales and marketing efforts.
Optimal study conditions exist when behavioral data are appended to attitudinal and demographic survey data to enable more reliable querying/segmentation, ultimately providing the vehicle for increased profit per customer.
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While specific purposes of a segmentation study may differ, a short set of business questions are typically the impetus for such a study:
- Is the target population made up of different subgroups that should be treated differently?
- Are these subgroups easily identified and targetable?
- Can the members of subgroups be (differentially) influenced to acquire them as new customers, retain them longer as current customers, or sell them more products and services and deepen the relationship?
Key outcomes of a segmentation study may include:
- Improved acquisition rates from direct marketing programs
- Identification of entirely new market opportunities
- Empirical foundation for new product development
- Enhanced break-through on brand positioning and advertising campaigns