Explain the various method of segmenting the market?

1. Cluster Analysis:-Cluster analysis is an exploratory tool to design to reveal natural grouping within a large group
of observation. Cluster analysis segments the survey sample, i.e respondent’s orcompanies, into a small number of
groups. Respondents whose answers are very similar should fall into the same clusters while respondents with very
different answers should be in a different cluster. Ideally, the case in each group should have a very similar profile
towards specific characteristics (e.g.-attitude or behavioral question) while the profiles of respondent belongs to
different clusters should very dissimilar. Its main advantage is that it can suggest based on complex input, grouping
that would not otherwise be apparent i.e. the needs of specific grouping or segments in the market. Cluster analysis
is widely used in market research to describe and quantify customer segment. This enable markets to target customer
tailored to their needs instead of having one general marketing approach.
2. Conjoint analysis:-Market research is frequently concerned about finding out which aspects of a product or
services are most important to companies. The ideal product or service Of course, would have all the best
characteristics, but realistically trade –offs have to be made. The product with the most expensive features, (for
example) cannot have the lowest price. Conjoint analysis is a technique for measuring respondent preferences about
the attributes of a product or service. It is the ideal tool for new improved product development. The conjoint
analysis asks the respondents to make choices in the same fashion as consumers normally do, by trading off features
one against the other, either by ranking or choosing one of several product combinations e.g. a task should be do
you prefer a flight that is cramped, costs $250and has one stop or a flight that is spacious,costs$500and is direct ;?
Using conjoint analysis, you can determine both the relative importance of each attributes (e.g. spaciousness, price,
number of stops)as well as which levels of each attribute are most preferred. (E.g. how much is a price of $250more
preferred than a price of & 500).
3. Discriminate Analysis- Discriminate Analysis are statistical techniques that point out the differences between
two or more groups based on several characteristics. It explains why respondent belong to a certain group. Plus it
classifies new responds based on their ratings.eg why are people very satisfied with a product verses the rest of the
market? It is often used to determine which customer is likely to buy a company product.
4. CHAID analysis: - Chi-squared Automatic Interaction Detector is used to build a predictive model, based on a
classification. The analysis subdivides the sample into a series of subgroup that (f) share similar characteristics
towards a specific response variable and that (2) maximizes our ability to predicted the value of the response
variable. The 1st predicted category is the predictor that is associated the most with the response variable i.e. it gives
the most differentiating group of respondents. Each group is then further split until the analysis does not find any
significantly discriminating any more. The outmost is a tree of which the branches are the predictor variable that
split the sample in discrimininate groups.CHAID analysis is typically used in the direct marketing industry to
identify the type of people who have reacted to a specific campaign.
Advertising planning and its importance

Differentiate new product planning from advertising planning in brand management?

Product is the ultimate bundle of attributes which is going to satisfy consumer need .Advertisement is a non-
personnel communication media.
1. In new product planning we generate the idea about the product. Whereas in Advertising planning we create a
context which is going to give the information to consumer.
2. In new product planning market analysis are performed in product planning. Whereas in advertising planning
pilots of advertising is delivered to the consumer.
3. In new product planning business analysis is an important step. But in advertising planning we don’t conduct
business analysis as after creation of product we usually go for advertisement.
4. In new product planning we generate the prototype of the product by designing the product and give it for market
testing if it fails we can modify the product once again. But in advertising planning we can’t modify the
advertisement when it fails.
5. In new product planning we do the promotion mix as a part of product planning. But in advertising planning
selection of advertisement media is important.
How is market segmentation different from market positioning?
1. Segmentation is done on the basis of demographic psychography, behavioural and geographical. But in
positioning segmentation helps the market to position a product in the mind of a consumer.
2. It segments the nation, religions, state, group, sex, age, and income etc.But in market positioning we position the
product.eg:-If we say about toothpaste name of Colgate came first in our mind.

Define advertising planning and its importance?

1st step Content:-In the 1st step the advertising should contain the content of advertising. Like the company want to
deliver the massage to the audience.
2nd step context:-In these step the company want to show the context of the company.
3rd step Target Audience:-The advertising planner should pre-fine the target audience to whom they want to
communicate.
4th step Budget:-Budget is one of the most important steps. As in this step the planner decide the expenses of the
advertisement and its ROI. (Return on investment).
5th step Media:-media selecting is the important step a who are the viewer of the advertisement is really a critical???
6th step Timing of advertisement:-If the product is new so it should telecast in the prime time of the popular
channel. And the timing also depends on the occasion of events like during puja, winter, summertime etc.
7th step frequently of advertisement:-In this step the planner plan how many times it should show on TV.
8th step Efficiency:-In the last step of advertising planning the efficiency of advertisement is evaluated. If the
advertisement is good enough it would increase sale and if it’s not effective it would not effect the sale at all.
The important of advertising planning
1. It would help in controlling the errors in execution.
2. It would help in informing the audience.