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- More than 2,100 members
- Top 20 Trade Association
- Represents entire range of consumer technologies
- More than $140 billion in annual U.S. sales
- CEA Market Research
- 250+ consumer research studies
- MARA sales data and forecasting
program
- Research Library / Economic
Insights
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- eBrain is a full service market research company providing primary
research services to the Consumer Electronics (CE) industry
- Founded in 1998 from the Market Research department of CEA
- eBrain conducts qualitative, quantitative, and online research on behalf
of individual CE companies
- Specializing in branding, product development & concept testing,
customer satisfaction and retention, segmentation, pricing, and global
research
- Contact us:
- Gina Woodall, VP, ginaw@ebrain.com, 703.757.5213 ext. 11
- Visit us at www.ebrain.com to learn more
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- What is Market Segmentation?
- Effective Segmentation Methods
- Usage of Segmentation in Consumer Electronics
- The Future of Segmentation
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- “… the basic recognition that every market is made up of distinguishable
segments of buyers with different needs, buying styles, and responses to
offers…”
- Philip Kotler, marketing guru
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- Consumer Segmentation:
- Demographics (e.g., lifecycle, gender, affluence)
- Psychographics – attitudes about the category
- Level of purchase consumption or usage (e.g., heavy gamers)
- Benefits sought
- Loyalty to the brand
- Early adopters versus later adopters
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- “Few differences exist when
profiling the digital imaging market based on gender. Men and women purchase and use
technology at roughly the same rates. Notable ownership differences
emerge when viewing the data through the more telling technology
adoption segmentation lens. For digital cameras the most striking figure
is the percentage of late adopters (47%) that own the product. This
further confirms the digital camera product category’s mass market
status.”
- - Digital Imaging Study
Update: Sharing and Storing Photos and Video II, Sept. 2006
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- eBrain conducted a telephone survey of adult television viewers and
asked questions about their attitudes toward watching television and new
technology
- A segmentation analysis was conducted that resulted in 5 unique segments
of television viewers
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- TV Innovators were targeted for new programming ideas and technologies
to enhance the viewing experience
- Convergence Viewers are an important target for driving ratings, as they
are the heaviest viewers
- They are good targets for tie-ins to other technologies, like web sites
with entertainment and info
- Good targets for cross-selling Internet access and telephony
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- Survey-based segmentation studies usually begin with a qualitative
phase, such as focus groups with the target audience, to develop a list
of attitudes and needs
- A questionnaire is developed using the list as input
- Survey is completed by the target audience online, by telephone, or
through the mail
- Data is analyzed using statistical software to develop the segments
- Traditionally, this is done using “clustering” techniques
- More rigorous tools, such as Principle Components Analysis (PCA) and
Latent Class models, provide more distinctive segments
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- The Tech Savvy CE Buyers:
- Spends an average of $1,290 per year on CE products.
- Owns more CE devices than any other segment.
- Buys a lot of CE product online; 28% of their yearly CE spending is done
online.
- Spend 3.5 hours researching each CE product purchase.
- Will continue to buy CE product online in the future, and probably
increase the amount of their total spend online.
- Demographically:
- More likely to be male than other segments (60% male – 40% female)
- Younger on average than all other segments
- Highest average HH income of all segments at $61,500
- Twice as likely to have kids under age 18 in the house than Next Wave
and Infrequent CE Buyers
- Much more likely to have at least a college education than other
segments
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- The Next Wave Online CE Buyers:
- Spends an average of $630 per year on CE products
- Buys little CE product online; 3% of their yearly CE spending is done
online.
- Spend 3.7 hours researching each product purchase.
- Is very, very open to buying more CE product online in the future.
- Demographically:
- Male / female split is about average (52% male – 48% female)
- Have a higher proportion of retirees than other segments (30% are
retired)
- Average HH income is $51,000
- Only one-fourth have children living in the household
- Have a higher proportion of African Americans than other segments (19%)
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- Target individual customers with products and marketing messages
- Identify new markets for CE products
- Understand the market for a new product concept and how to approach them
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- A segmentation study was conducted to identify unique groups of
customers with similar wants and needs from wireless communications
products
- The segmentation was based on consumers’ views about communications
services and expectations from their provider
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- Highest spending segment is “bundlers” – they spend 5 times as much as
any other segment on communications products
- Products and messages should focus on “control,” stability and bundled
services options
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- By “scoring” a database, we can identify segment membership with 89%
accuracy for telemarketing, direct mail, tailored statements, and online
advertising
- We can predict segment membership with 46% accuracy using only elements
in client database, such as: $ spent, services used, zipcode
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- The study focused on 5 separate populations:
- Women
- Seniors
- African Americans
- Hispanics (Spanish Language)
- Teens
- The segmentation was based on their technology behaviors, attitudes and
purchase decision factors
- Full results of “Five Technology Consumers to Watch” are available from
CEA
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- African Americans – Marketers should advertise their product warranties
and brand name to attract this group of careful shoppers
- Hispanics – Marketers need to support this group and build their
confidence through Spanish-language advertising, packaging, and
instructions
- Teens – Marketing messages should focus on status and innovation
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- A consumer segmentation, including profiles of likely buyers, and
drivers of and obstacles to adoption were included in the survey
- Segmentation was based on:
- Attitudes towards television and technology
- Perceived benefits of the new product
- Evaluation of motivational statements about the new product
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- The segmentation provided a list of salient product benefits and
motivational themes to stress to these groups
- It also provided information on how to target these groups
demographically and behaviorally
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- Survey-based segmentation that has all the information to truly
understand the customer and craft an effective strategy while also being
linked to a marketing vehicle, such as a customer database or commercial
list
- Segmentation will become a part of more CE market analyses and used to
“differentiate” product feature bundling and communications
- Segmentation may also become a way to address consumers’ desire for
personalization
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