Statistics - Chapter 13 - Implementing Basic Differences Tests
Why differences are important
The needs and requirements of each of the market segments differ
greatly from the others, and an astute marketer will customize his or
her marketing mix to each target market's unique situation.
Market segmentation is based on differences between groups of
consumers. One commonly used basis for market segmentation is the
discovery of statistically significant (1), meaningfull (2), stable (3) and
actionable (4) differences.
- Differences must be significant (1)
Statistical significance of differences means that the differences found
in the sample truly exist in the population from which the random
samples are drawn. Statistical tests would determine if the responses
were significantly different.
- The differences must be meaningful (2)
A finding of statistical significance, in no way guarantees "meaningful"
difference. A meaningful difference is one that the marketing manager
can potentially use as a basis for marketing decisions. (mensen met
keelpijn willen geen ingrediënt tegen hoofdpijn in het medicijn en
andersom)
- The differences should be stable (3)
Stability refers to the requirement that we are not working with a short-
term or transitory set of differences. Thus, a stable difference is one
that will be in place for the forseeable future. The differences between
the two groups are stable. (When a cold strikes, the sufferer will
experience the same discomfort.)
- The differences must be actionable (4)
An actionable difference means that the marketer can focus various
marketing strategies and tactics, such as product design or
advertising, on the market segments to accentuate the differences
between the segments. A great many segmentation bases are
actionable, such as demographics, lifestyles and product benefits. (It
would be economically unjustifiable to offer so many different cold
Why differences are important
The needs and requirements of each of the market segments differ
greatly from the others, and an astute marketer will customize his or
her marketing mix to each target market's unique situation.
Market segmentation is based on differences between groups of
consumers. One commonly used basis for market segmentation is the
discovery of statistically significant (1), meaningfull (2), stable (3) and
actionable (4) differences.
- Differences must be significant (1)
Statistical significance of differences means that the differences found
in the sample truly exist in the population from which the random
samples are drawn. Statistical tests would determine if the responses
were significantly different.
- The differences must be meaningful (2)
A finding of statistical significance, in no way guarantees "meaningful"
difference. A meaningful difference is one that the marketing manager
can potentially use as a basis for marketing decisions. (mensen met
keelpijn willen geen ingrediënt tegen hoofdpijn in het medicijn en
andersom)
- The differences should be stable (3)
Stability refers to the requirement that we are not working with a short-
term or transitory set of differences. Thus, a stable difference is one
that will be in place for the forseeable future. The differences between
the two groups are stable. (When a cold strikes, the sufferer will
experience the same discomfort.)
- The differences must be actionable (4)
An actionable difference means that the marketer can focus various
marketing strategies and tactics, such as product design or
advertising, on the market segments to accentuate the differences
between the segments. A great many segmentation bases are
actionable, such as demographics, lifestyles and product benefits. (It
would be economically unjustifiable to offer so many different cold
