“The ultimate source of growing your business, any business, is market segments,” so says Dr. Eduardo ‘Ned’ Roberto during the13th Consumer Coping Survey Presentation last May 8, 2015. Roberto, the country’s foremost marketing authority, discussed the output of the 2014 nationwide survey on consumer coping behavior, which was administered by the Social Weather Stations (SWS). The presentation included 151 product categories and how the products have moved, upward or downward, from being a “staple”, near-staple”, “nice-to-have”, “near-dispensable”, and “definitely-dispensable” products.
Roberto, who is also research consultant of the DLSU Ramon V. del Rosario College of Business, emphasized the significance of understanding the behavior of market or consumer segments, towards growing the business, in addition to building product categories. Product and market managers need to understand the buying behavior of the coping market segments such as the core maintainers, lapser and non-users in their respective product categories.
Roberto said that businesses can source their growth through a customer retention campaign for the maintainer segment, a customer re-acquisition campaign for lapsers, or a new customer acquisition campaign for non-users. Also, a business can use its brand’s competitive standing (RSM) in the product category where it belongs. If there is business growing for a market leader brand, a challenger brand or a contender brand, one can also find business growing from the segment’s poor brand consciousness, weak trial usage rate, and lowering retention behavior.
Finally, Roberto said that any business interested in increasing its market share should understand that consumer brand-level budgeting behavior is dynamic; constantly moving from one segment to another. “Products and new products are only secondary sources. You may have the most interesting product from R&D but if there’s no market segment in need of it, you will have zero revenue,” he said.
The 13th Consumer Coping Behavior Survey Presentation was held on May 8 at Room 703, Brother Andrew Gonzalez Hall, De La Salle University. This was a result of a partnership of the Bayan Social Marketing and Organizational Development (SMR&OD) Foundation, Social Weather Stations, and the Center for Business Research and Development (CBRD). (Cresilda Caning)