Campaign logistics: The backbone of modern marketing methods

By David Hamer

Advances in technology now allow consumers who use a hard drive when recording their favorite programs to skip past the adverts with unashamed glee. People are constantly bombarded with marketing messages not only via their televisions, but also when using their computers for work and pleasure. 

When overloaded with these messages, consumers tend to switch off without even realizing it, and businesses are finding that their marketing budget has not produced an acceptable return on investment. Finding an appropriate way to complement these traditional methods of marketing their products has become a high priority for many business owners who are desperate to stay afloat financially.

Experiential marketing

Carried out efficiently, experiential marketing has the potential to increase long-term sales forecasts, and get your business noticed on a local level. This method of marketing involves engaging with members of the public in a fun and memorable way. They can sample your products with no pressure to buy, but the concept is that they will remember your brand and talk about your products with their friends and family.

 This type of marketing could take place at venues such as: 

• Shopping centers
• Farmers markets
• Music festivals
• Trade fairs
• Town centre shopping precincts

The main consideration is your target market, and where you are most likely to find them.

Campaign logistics

Apart from a first-class product, logistics is probably the most important aspect of an experiential marketing campaign. You may have planned the whole event meticulously, but if the plan is not carried through successfully, it will have been a wasted effort. Choosing a professional logistics company who have experience with this type of marketing campaign can mean the difference between success and failure.  

A good logistics company will be able to offer you invaluable practical and administrative assistance with your plan. For example, they could provide: 

• A choice of temperature-specific storage facilities for your product, whether that is at frozen, chilled, or ambient temperature.
• A wide range of transportation options, from small vans to articulated lorries or trucks.
• Fully-trained staff to support your marketing team.
• One point of contact that enables efficient communication should your plan change at any time.

An experienced campaign logistics company will ensure that your event runs smoothly, and that your target customers enjoy a memorable experience.

A positive experience enjoyed by many people will ensure that your brand is noticed, both through the actual event, and more importantly through the word-of-mouth recommendations that will follow.

This article, written by David Hamer, is one of many he has published on the subject of logistical solutions in marketing.

Basic statistical concepts: Data collection by sampling method

Data sampling is used to learn more about people such as consumers, events such as consumer spending, and information such as how much a consumer spends. In other words, data sampling is the acquisition of recorded numbers, information, facts or events in the form of a data set or multiple data sets. This data set is the data sample that is used in obtaining statistical answers for questions. 

Data can be collected in a number of ways, one of which is the sample method. Other methods of data collection include data mining, aggregate data gathering, random sampling, and qualitative research. This article will discuss data collection by sampling in terms of 1) its objectives, 2) how it can be done and 3) how it is analyzed.

Objectives of data sampling collection

Data sampling attempts to achieve some core objectives relevant to the statistical study in question. Specifically, sample data is utilized in a number of disciplines/fields to learn more about the subject. Moreover, in marketing, sample data may be used to learn more about people's behavior, choices, and actions for the purpose of improving marketing techniques and goals. The points listed below indicate some of the ways sample data can be used to determine.

• Information about a larger sample or population group

• Relationships between events, things or actions with other things, events or actions

• Identification of trends and patterns

• Grouping of sample data for categorization

• Analysis for research evidence and/or verification 

• Functionality of software analysis tools

An illustration of data sampling

Data sampling can be analyzed and implemented in a number of ways as we have seen. However, how this is done can vary so an illustration of how sample data is gathered and studied can be helpful. In the following hypothetical example, 1000 people are asked to partake in a statistical study. The study attempts to achieve market research into the juice flavor preferences of the 1000 people who are of different ages, gender and cultural background. To do this the following steps are taken:

• Create a simple survey with a few questions that can be used in the sample analysis

• Locate a suitable population sample from which to gather the data

• Of that population recruit 1000 of them to participate in the survey study

• Perform the research by having the population sample fill out the survey

• Analyze the data using statistical tools, software and/or techniques

• Draw conclusions based on the evidence presented by the sampling data

To further illustrate, data sampling helps answer questions like the following example: If 1000 people drink juice every day and have a choice of apple, tomato and grape juice what will be the affect on that sample population if orange juice is added to the selection? In this example, the dependent variable is the numbers of people selecting each type of juice, for example 700 apple, 100 tomato and 200 grape. The independent variable is the orange juice. The data sample is the number of people who drink each type of juice after the addition of orange juice.

Analysis of sample data

To further illustrate data sampling, data sets are used in statistics to deduce statistical relationships and characteristics of the sample data set and between independent and dependent variables within the sample data alone. Dependent variables are the individual records within a data set that are influenced by a change in the dependent variable. Sample data can be acquired a number of ways for example by primary or secondary research. The application and analysis of sample data can be used in many ways, some examples being double blind studies, control experiments, population surveys, hypothesis testing and more.

In the above example sample study of juice drinkers the affect of introducing orange juice to their choice of juices is the sample data. The data was collected with surveys rather than by observation(s), and the study was at one fixed point in time and not a over time. Thus, studies can be limited or extensive depending on what sample data is collected and how it is analyzed. How data is gathered and an analyzed can thus have a decidedly significant affect on the quality of the data and the extent of its use.

For example, the data can be analyzed simply for summary statistics such as X amount of people would drink orange juice if the given the choice out of 4 juices and Y amount of people would drink grape juice. However, the data can be further analyzed for accuracy using regression analysis in which alpha, beta and P-values are determined to aid in determining the validity of the statistics garnered through the sample data. These values help determine correlation, falsification due to pre-existing beliefs being tested, and probability of accuracy. Another way the information can be used is in cluster analysis in which the patterns of information are grouped for the purpose of assessing additional relationships. For example, the number of grape juice drinkers who would choose orange juice if grape juice were not available.

Sources:

1. http://home.ubalt.edu/ntsbarsh/Business-stat/opre504.htm#rrTopiinbuSt
2. http://brent.tvu.ac.uk/dissguide/hm1u3/hm1u3text3.htm
3. http://www.businessdictionary.com/
4. http://www.investorwords.com/
5. http://dictionary.babylon.com/

Marketing: Understanding segmentation variables

To understand what segmentation variables in marketing are, it helps to first know what market segmentation is. Market segmentation is the analysis of population demographics in marketing research so they can be categorized in specific ways. These specific ways of categorization in market segmentation are why segmentation variables are needed and used. Moreover, market segmentation variables define both how a demographic will be segmented and categorized. Market segments can also be divided into sub-categories or branched-categories in which additional variables are added to sub-sets of the market segment for more elaborate identification.


What segmentation variables are

Segmentation variables help marketers and/or market researchers refine target marketing and market segmentation to pre-determined goals and/or inquiries regarding the market segment. These variables can include and/or exclude a wide range of data depending on what the market researcher wants to find out. Some commonly used market segmentation variables include age, gender, and zip code. Segmentation variables span a range of functions, intents and descriptions and include the following types as also illustrated at Netmba:

• Geographic variables ex-zip code, area code, city

• Consumer behavior ex-spending habits, favorite products

• Interest information ex-attitudes, beliefs, lifestyle

• Population information ex-gender, age, income, occupation

Illustrating further, in times when basic demographic is not enough to segment a market additional variables are needed to further focus the categorization of potential and existing client profiles. In such cases the marketer may want to know about product preferences, income level, occupation, and other more detailed aspects of market segmentation. For example, if a marketer knows clients for ABC store generally come from 3 surrounding zip codes a geographic market segmentation is defined. However, other than this no additional information is available about the market. Questions such as why they shop at ABC store, when they shop there, and what they shop for may also be useful to the market researcher.

How segmentation variables are used

Market segmentation variables are used to answer specific questions and provide more detailed information about existing and potential clients in the context of business applications. To use the variables correctly proper statistical methods, and data collection techniques should be used so as to not disproportionately gather information, incorrectly collect that information, or haphazardly analyze and utilize it. 

Good segmentation variables address the budget, product, brand equity, revenue goals and other important aspects of business operations. If the wrong variables are used in the wrong way during market segmentation, the questions answered may not be appropriate for the company's objectives. Market segmentation variables are thus used in the following ways:

• Assist in determining market information

• Help companies identify who to market to

• Provide criteria to more specifically categorize existing market(s)

• Are used in statistical analysis and/or additional market research

• Allow companies to fine tune their marketing budgets and expenditures

To illustrate further, consider the ABC company once again. ABC company wants to find out three things, 1) who buys its products, 2) why these people buy their products and 3) what products they buy. In order to do this ABC company first defines its goals i.e. to answer these 3 questions, then creates a way to do this, ie. data gathering. Following this the data collected is analyzed using tools like histograms, regression analysis, and further qualitative and/or quantitative research. When the information is compiled and analyzed, a more detailed overview and understanding of the company's market should be clear.

Summary

This article has discussed market segmentation variables in terms of what they are and how they are used in the context of business decision-making. Moreover, market segmentation variables are data that reflect unique and specific aspects of a company's existing and/or potential market. These variables are gathered using information acquisition techniques, Following this, the information is processed through analysis designed to answer and address a businesses key objectives and concerns. Once the information is analyzed and presented, the company may then have an increased probability of making more sound financial, operational marketing and advertising decisions.

Sources:

1. http://www.businessplans.org/Segment.html
2. http://www.netmba.com/marketing/market/segmentation/

Consumer Buying Behavior and Market Segmentation

The relationship between consumer behavior and market segmentation reflects the interaction between a marketing program and consumer psychology. Marketers seek to identify large population groups known as 'market segments', and then understand consumer behavior within these market segments  in order to develop a marketing campaign.

Some models of consumer behavior such as the 'Fishbein model' tend to focus on measurement of pre-cursors to consumer behavior.(1) This is effective to an extent, however, consumer behavior itself is not immutable and unchangeable, and can be influenced by marketing such as with product placement.(4) Moreover, not only can consumer behavior change, but so too can marketing itself implying a possible relationship between marketing and consumer behavior in the determination of market segments. 

Consumer behavior

To better understand consumer behavior and market segmentation reflect on the two words 'consumer' and 'behavior' separately; a consumer is one that consumers products or services and behavior is how a person makes decisions and conducts oneself in various situations. Factors that influence behavior and by extension, consumer behavior are listed below:

• Belief
• Socialization
• Need(s)
• Ability
• Requirement(s)

Consumer behavior is how a person makes decisions and conducts oneself in relation to consumption of products and services. This itself is a segmentation of behavioral analysis and behavior itself spans many an activity and reflects multiple perspectives that often influence other aspects of behavior.

Market segmentation

Market segmentation is the division of a large group of consumers using specific demographic attributes. Market segmentation attempts to segment markets in such a way that consumer preferences and decisions can be better understood and identified. This assists marketers in knowing 1) who is more likely to buy a certain product or service, 2) what conditions are needed for that buying behavior and 3) what the best way to market a product or service is. Below are some different ways to segment a market:

• Age
• Income
• Gender
• Ethnicity
• Religion

In actuality a market can be segmented by consumer behavior hence the relationship between consumer behavior and market segmentation. However, if this does not adequately affect decisions that might correlate highly to demographics, then the segmentation may be incomplete or ineffective.

To illustrate the previous point, if a market is segmented by whether or not they use deodorant. Moreover, if the market is only segmented by this, not taking in to account demographic factors such as gender can be disastrous for a company's marketing campaigns as men and woman's body's require different products not just a one size fits all product.

Integration of consumer behavior with segmentation

In integrating consumer behavior with segmentation it helps if the marketer has an in depth knowledge of the market because statistics alone do not allow for intuitive reasoning. Intuitive reasoning fills in gaps of market segmentation with discerning probability versus statistically improbable unknowns.

Since consumer behavior and segmentation are dynamic and involve many variables, it is unrealistic to assume a basic segmentation by demographics and core beliefs are going to be the only factors that influence consumer decisions.

This is evident in the 'Fishbein model of consumer behavior' which according to a Government study on Driver attitudes is not only a pre-cursor to consumer behavior but just one of several other influential factors. (1)  This inherently means consumer behavior itself is not always identifiable in relation to a single cause. Some factors that can influence consumer beliefs and subsequent behavior are listed hereafter.

• Attitude
• Intention
• Reasoning
• Mood
• Activity

In light of the complexity of consumer behavior, market segmentation may often end up being a rudimentary or scaled down representation of what is really going on. (2) When marketing has a measurably greater influence on the formation of consumer behavior, then not only would targeting and identification of market segments be more accurate, but marketing programs themselves would have more front end influence on consumer behavior.

Sources:

1. http://bit.ly/cwRX7X (Federal Highway Administration consumer research)
2. http://bit.ly/acrFFa (USC Marshall: Lars Perner: Consumer behavior)
3. http://bit.ly/9Har7j (Library of Congress: Market Segmentation)
4. http://bit.ly/bh2kfA (Wisconsin School of Business: Bill Shepard)