Question 1
The pub business in the United Kingdom has witnessed significant growth in the recent years. This growth is associated with the increased sales and profitability of the business. Most businesses attribute their success to their market segments as it contributes to increased sales. Selecting the best market segment is essential in realizing success or failure to an establishment due to the customer base. Appreciating success in business requires proper segmentation and management towards segmentation benefits. The benefits of segmentation can only be realized once a complete study of the business needs is conducted. This is consistent with the notion that most segmentation research is conducted for product research (Kent 2007, p. 88). Many segmentation approaches are applicable to different consumers and the industrial markets around them.
The segmentation model requires that a segmentation basis is used in the process. This is in order to appreciate the benefits that are associated with segmentation. There is a wide selection variable that can be used as the basis for conducting a segmentation process. These variables are referred to as the segmentation base for market choice. The segmentation that is selected to subdivide the market will depend on the following attributes; product type, the nature of demand, distribution method, the media and mode of communication. Customer motivation is an essential attribute in determining the segmentation of choice. Most Segmentation bases are used in combination with others to provide a variety of market segments.
The following are the bases used in determining the best segmentation of choice.
The Geographic base that provides for the division of the market into geographic entities is the first base. This type of segmentation has been used for the longest time for the purpose of segmenting markets. This is attributed to the fact that many businesses operate on geographical grounds or territories. Some businesses are limited to their geographical territories due to the lack of funds to enlarge their distribution networks; while some are limited to local demands and supply needs (Bradley 2007, p. 79).
Geographical base can be analyzed from a local, national or international perspective. The gross national product per capita is essential in providing an analysis of the geographical base. It results into three segments that include industrialized, developed and less developed countries. These geographical segments are studied for the following characteristics: The differences in purchasing behavior, feeding habits, as some areas have higher consumption than others and expenditure (Bradley 2007, p. 79).
Demographic segmentation involves dividing the market into groups based on demographic attributes. These attributes include the age, gender, and socioeconomic status of a group, size of family, income and level of education. These Attributes are the most common bases in identifying a consumer group. This is attributed to the fact that the variables study the characteristics and roles of people in market segmentation (Kent 2007, p. 88). These attributes give the requirements of a consumer in determining their business needs. Many marketers have resorted to collecting data about their consumer characteristics frequently. This is done despite the fact that the marketers may want to use other bases to segment their markets. Some of the issues that are addressed through this base are whether different individuals of different ages show different sensitivities to different issues. It is also essential to identify the ages in which differences in sensitivities are manifested.
Psychological base was used as a result of a relative dissatisfaction of geographic and demographic bases. The psychological base is a considerable base that can be used to predict the behavior of consumers. The base characteristics were implemented procedurally by anthropologists and sociologists and worked on the subjects. The test results can be applied in the process of segmentation of consumer markets to five accurate results. This base was centered on attributes such as the personality, risk, attitudes and reference groups. A significant amount of work has been done in proving the significance of this base although personalities are different.
The psychographic segmentation is another base that can be used to find the best market segment to establish a business (Kent 2007, p. 89). This is a combination of motivation and personality research conducted on the customer. This base puts emphasis on qualitative research methods in consideration to the psychological behavior of the customer. It focuses on the lifestyle of consumers with application to segmentation approaches. It also focuses on the general environment, social, cultural and socialization factors. This base can assist market segmentation by providing a useful description of other segments. It is also essential in creating new segments according to other aspects of lifestyle.
The behavioral base is the most significant segmentation basis for segmenting a market. It divides the consumers on the basis of their product use and how they respond to the products. Other aspects such as the brand loyalty, user status, usage situations and backward segmentation are effective in this category. Many marketers are of the opinion that the behavioral base should be the first step in segmenting the market. This base classifies consumers according to the benefits they derive the products they use.
Question 2
The two main categories of research include qualitative and quantitative methods. These are data collection methods meant to be used in the analysis of market information. A qualitative research method is associated with the use of numbers and objects such as charts and graphs; whereas qualitative research method is associated with people’s feelings and other variables that cannot be measured. The qualitative method is significant in analyzing variables in consideration of an agreeable measure of abstraction. Qualitative research concepts are described using variables while quantitative research concepts are described using motives.
Quantitative research measures are normally universal and can be applied in different situations. The use of formulas is one instance illustrates the universality of quantitative measures of research. Formulas are essential in finding the mean, mode and median as a universal medium of measurement. This is not the case with qualitative research as it focuses on every research instance in an independent approach. Individual inputs are used to determine individual outputs that are used in developing data, in consideration to prevailing characteristics.
Both qualitative and quantitative research methods are beneficial in market research for many businesses. The pub business can benefit immensely by the use of qualitative and quantitative research methods. This is because of the involvement of the public in the research methods. Quantitative research methods can be used of pub activities can be analyzed using tables and charts. This provides concise information that can be used to provide the proper analysis to market information. Quantitative research is essential in the use of numeric data in presenting data about consumer behavior. The numeric data presented can be used to establish a relationship of consumers and their consumption behaviors. This is essential in providing an appropriate prediction of customer behavior using numerical data. The result is the application of quantitative data in providing quantitative analysis of consumption behavior in various pubs.
The qualitative research methods are appreciated for its acknowledgement of the use of abstraction to analyze pub information. This research method utilizes psychological information derived from the psychological base of market segmentation. Generalization of facts such as the feelings of customers towards certain products consumed in the pub is essential (Belk 2006, p. 31). This is because such information can be used to provide advice on the products that are acceptable in certain pubs. This information is essential in determining what is required to invest in a pub of a certain segment.
The Qualitative approach enables the researcher to interact with consumers that flock pubs to access the various products found there. The researcher can ask the consumers essential questions that he or she may want to find out about the business. The researcher can ask about the consumer’s feelings and what they expect from an ideal bar. This would inform the researcher on the consumer’s feeling about the business, in case the researcher wants to invest in it. It also allows for an in depth questing of some issues that the researcher feels he, or she needs more information for clarity (Belk 2006, p. 31). This interactive session is essential especially if it allows a provision of adequate information about the operations of bars and pubs. This is achievable by invoking a discussion between consumers who would be able to provide accurate information.
The information provided by customers is considered accurate and can be used to make accurate predictions. There is a chance of uncovering issues that may have seemed to be unclear through the use of qualitative research. Qualitative research measuring provides a list of possibilities that are meant to generate new marketing ideas and concepts (Murthy 2008, p. 37). This research also helps and investor in identifying the prevailing customer language so as to ask consumers the right questions. This would enable consumers to provide accurate information in a way that corresponds to the way it was asked. As a result, business owners do not have to evaluate past ideas that may have been inapplicable in the business.
Quantitative is essential in business because it is statistically reliable. The pub business requires accurate statistics in order to prevent cases of customer dissatisfaction. Quantitative research is also beneficial in determining if an idea or a concept does not meet customer’s expectations. Information obtained from a reliable quantitative research source is better than the expected alternative. The result obtained from this research is predictable to a future situation (Belk 2006, p. 37). It is also easier to give predictions where this research has been used than in other cases. A proportion of the consumers may not be truthful with their information, but numeric data does not lie. The numeric data provided is proportional and corresponds to the population that may have visited a bar or pub.
Question 3
Market segmentation and qualitative and quantitative research are methods that can be used to base markets for bars and pubs. Market research involves the process of gathering, analyzing and interpreting specific marketing information (Belk 2006, p. 8). The information in question is meant to help establishing of a new bar and pub business. The market research is usually related to a specific problem that may be associated with running a business. The process of market research involves the process of defining the problem, data collection analysis and solution formulation. Defining a research problem involves establishing the objectives of why the business is being operated. The research should have at least one objective before it is commenced.
A business can use one or more of the market research methods to investigate market situations for a specific business. The type of data and the amount of money to be used determines the technique that is applied in market research. Surveys are one way that can be used to provide accurate results in for a market research. Surveys use questionnaires for the purpose of gathering information, which makes them straightforward (Sarstedt 2011, p. 56). A research can analyze a specific target group that represents one target market. Larger samples translate into reliable and accurate results than smaller samples.
Surveys involve the use of interviews that are usually conducted in locations with high human traffic. Such places include shopping malls and social gatherings, churches, community halls and parks. Surveys allow users to express their feelings about specific products and based on the packaging and advertising in their feedback (Sarstedt 2011, p. 27). The response rates for most surveys are estimated to reach up to ninety percent, although they are expensive.
There are three known forms of surveys, including in-person, telephone and mail surveys. In person surveys uses tabs in providing user feedback to researchers. The in-person surveys are the most expensive as each interview is expected to cost $100 for an interview. Telephone surveys are the most common and less expensive than in-person surveys (Sarstedt 2011, p. 29). They involve the use of phone calls to carry out verbal interviews with users. Many people are increasingly resisting the use of phone calls to carry out interviews. The response rates of telephone interviews have dropped to 50% in the recent years.
Mail interviews are the most convenient and inexpensive way to carry out research. This is because they the use of mails reaches a broader audience than any other survey method. This method of research survey is cheap and cost effective for pubs.
A researcher can also employ the use of personal interviews to find out information about the running of a pub or bar. Personal interviews play an essential role in getting personalized responses from consumers about certain products (Murthy 2008, p. 37). An interviewer can make up a conversation in an unstructured manner in order to get the required information. Personal interviews are advantageous because they take less than one hour in the process. This is essential not to take much of the consumer’s time while carrying out the interview. The problem with personal interviews is that they cannot be reviewed statistically, making them statistically unreliable.
A researcher can use observation to carry out research and make substantial conclusions. This is essential because it gives a personal encounter with what is required during the interview process (Murthy 2008, p. 37). An interviewer can use a video tape or just observe a consumer for accurate results. This reduces chances of acquiring distorted facts about one’s effort in the interview process. The observer gets a concise picture of consumer behavior in a bar or a pub. As a result, the observer is able to make informed choices. Observation is the oldest market research technique because it does not consume much resource and it is cheap.
List of References
Belk, R. W. (2006). Handbook of qualitative research methods in marketing. Cheltenham, UK, Edward Elgar.
Bradley, N. (2007). Marketing research: tools & techniques. Oxford [u.a.], Oxford Univ.
Press.
Kent, R. (2007). Marketing research: approaches, methods and applications in Europe. London [u.a.], Thomson Learning.
Murthy, S. N., & Bhojanna, U. (2008). Business research methods. New Delhi, Excel
Books.
Sarstedt, M., Schwaiger, M., & Taylor, C. R. (2011). Measurement and research methods in international marketing. Bingley, UK, Emerald.
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