Introduction

Digital Retail Solutions Market

(Meaning & Definition, Segmentation,
Technology & Design of Research Methodology )
 What is Digital Retail ?
• Meaning & Definition :- It is a series of connected
experiences that allows consumers to understand each
step in the shopping process.
• Digital retail solutions market:- It means using digital
technologies to create game-changing business
innovations that disrupt existing industries or create
whole new ones. That’s a pretty simple definition, but it
quickly gets very difficult to drive that down to specifics.
People point to Spotify or Uber, where technology
upended a market. It makes an easy way to understand
the customer needs.
 Segmentations

• Types of Market Segmentation:-

a) Demographic segmentation – This method based on multiple
variables such as Age, Sex, Gender, Income, Religion &
Educational Qualification etc.
b) Behavioral segmentation – This method based of dividing the
total market into smaller homogeneous groups based on
customer buying behavior. Behavioral segmentation is done
by organizations on the basis of buying patterns of customers
like usage frequency, brand loyalty, benefits needed, during
any occasion etc. It is done keeping in mind the needs and
wants of a customer based on the behavior that they show.
 Segmentations
c)Psychographic segmentation- is the market segmentation
strategy in which the total market is divided on the basis of
psychology, personality of people, characteristics, lifestyle,
attitudes etc. Psychographic segmentation helps identify people
based on the way they think & the kind of life they want to live.
This segmentation method focuses on the psychology of the
customer, which can be focused upon by the company for their
marketing activities.
d) Geographic segmentation- It is a common strategy when you
serve customers in a particular area, or when your broad target
audience has different preferences based on where they are
located.
 Digital Retail Solutions Market
Segmentations
• Target Audience In Digital Marketing;
1) B2B or B2C,
2) Conduct Surveys, Ask Questions & Get
Feedback,
3) Use Data to your Advantage,
4) Use Social Media Ads such as FB, Twitter,
LinkedIn etc. to find your Audience,
5) Look at what content is working best.
 Digital Retail Solutions Market
Segmentations
6) Look at your Competitors,
7) Understand your Price Point is a big deciding factor,
etc.
Conclusion:- Key benefits to Segmentation. Better
match of your product or service offering to your
customer's segment needs. Improve product or services
offered. Enable businesses to retain more customers by
offering products that appeal to where customers are in
their stage of life.
Technology Trends in Digital Retail Market

• 5 retail technology trends to watch in 2019;- Retail

technology is a long game and advancing innovations
can be on the rise for a very long time.
a) Customization enabled by tech,
b) Buy online, pick up in-store BOPIS moves beyond mass
market,
c) Search options expand,
d) Augmented reality and virtual reality find homes in
narrow spaces,
e) Automated checkout/Cashierless stores etc.
 Design Research Methodology in Digital
Retail Market
• Market(ing) Research: Definition - The
systematic design, collection, analysis and
reporting of data and findings relevant to a
specific marketing situation facing the
organisation
Spending on Market Research by Sector in the (For example
UK)

Other
Non-ad. research
agencies
Ad. agencies 4% 5%
4%
Retailers and
wholesalers 9%

Manufacturing
44% Companies
13%
Public sector

21%

Service companies
 The Ten Most Common Market Research
Activities
Directly
Activity Percentage of companies doing relevant to
activity* NPD

Determination of market characteristics 97

Measurement of market potential 97

Market share analysis 97

Sales analysis 92
Studies of business trends 91
Short range forecasting 89
Competitive product studies 87
Long range forecasting 87

Pricing studies 83

Testing existing products 80

* based on research activities of 599 companies in the US

 Types of Market Research: By Source

Primary Collection of data specifically for the problem or

project in hand
Secondary Based on data previously collected for purposes
other than the research in hand (e.g. published articles,
government stats, etc)
 Types of Market Research: By Methodology

Qualitative Quantitative

Type of Question Probing Simple

Sample Size Small Large
Information per respondent High Low(ish)
Questioner’s skill High Low(ish)
Analyst’s skill High High
Type of analysis Subjective, Objective,
Interpretative Statistical
Ability to replicate Low High
Areas probed Attitudes Choices
Feelings Frequency
Motivations Demographics
Qualitative vs Quantitative
Total
Mkt
Quant Qual
Share

Market Measurement 18.4% 20.8% 3.3%

NPD/Concept testing 13.8% 11.6% 27.3%

Ad/brand awareness 12.7% 14.4% 2.2%

tracking
Customer satisfaction 9.7% 10.4% 5.4%
(incl mystery shopping)
Usage and attitude surveys 6.6% 6.0% 10.4%

Source BMRA,
 Types of Market Research: By Objective

• Exploratory Preliminary data needed to develop an idea

further. Eg outline concepts, gather insights,
formulate hypotheses

• Descriptive Describe an element of an ideas precisely. Eg

who is the target market, how large is it, how will it
develop
• Causal Test a cause and effect relationship, e.g. price
elasticity. Done through experiment
 The Market Research Process

1. Defining the 2. Developing 3. Collecting 4. Analysing 5. Presenting

problem and the research the the the findings
objectives plan information information

Steps
Distinguish between Decide on Information is Statistical Overall conclusions
the research type - budget collected manipulation of to be presented
needed e.g. - data sources according to the data rather than
the plan (N.B. collected (e.g. overwhelming
- exploratory - research
approaches it is often done regression) or statistical
- descriptive subjective
- research by external methodologies
- causal instruments analysis of focus
firms)
- sampling plan groups
- contact methods

Comments
If a problem is The plan needs This phase is Significant Can take various
vaguely defined, to be decided the most costly difference in forms:
the results can upfront but and the most type of analysis - oral presentation
have little flexible enough liable to error according to - written conclusions
bearing on the to incorporate whether market supported by analysis
key issues changes/ research is
- data tables
iterations quantitative or
qualitative
 Problems With Research Buyers vs
Suppliers

Buyer Suppliers

• Narrow concept of research • Variable quality of market

researchers
• Research used tokenistically
• Market researchers not
• Unrealistic view of timeframe sufficiently demanding

• Technical problems
 Problems With Research Buyers vs Suppliers - Detail
Problems with Buyer
of Research
- Narrow concept of research
• many managers see M.R. as no more
than fact-finding
• they therefore spend little time defining
the problem or explaining the context
• the results are irrelevant
• a vicious circle arises
- Research used tokenistically
• used to confirm existing views rather
than objective look at marketplace
- Unrealistic view of time frames
• often results are expected very rapidly
• research therefore commissioned too
late
• research firms bow to time pressure and
results are sub-optimal
Problems with Supplier
of Research
- Variable quality of market researchers
• little uniformity of professionalism
across the industry
• many small, poorly qualified
companies
- Market researchers are not sufficiently
demanding
• upfront time often insufficient
• little contact throughout process
- Technical problems arise e.g.
• problem ill-defined
• questionnaires poorly constructed

Differing styles
M.R. documents are often phrased in an abstract, tentative way (and rely
on jargon) whilst managers expect concrete, down to earth
recommendations
 Summary
• “It is the process or set of processes that links the producers, customers, and end
users to the marketer through information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the method for collecting information, manages and implements
the data collection process, analyzes the results, and communicates the findings
and their implications.“
• It is the systematic gathering, recording, and analysis of qualitative and
quantitative data about issues relating to marketing products and services. The
goal of marketing research is to identify and assess how changing elements of the
marketing mix impacts customer behavior. The term is commonly interchanged
with market research; however, expert practitioners may wish to draw a
distinction, in that market research is concerned specifically with markets,
while marketing research is concerned specifically about marketing processes.