The significance of cluster analysis and its use in marketing is debated a lot. KPO Companies in India play hardball in researching markets and use all possible techniques they can to decipher them, read them well and use that derived knowledge for the betterment of the reports they work on.
In quintessential marketing, the technique of cluster analysis is used by KPO Companies in India for the following tasks.
Segmenting Markets and Determining Target Markets.
Positioning Products and Developing New Products.
Selecting Test Markets.
The first parameter is important to identify markets where the service can sell encouragingly. Not every market will be as receptive as perhaps the one most suitable for the service. The whole market space ought to be perceived out of which one of the chunks ultimately becomes your target market. The client identifies his target and belligerently promotes his service to see it sell well.
Once you have the market opened up in front of you, next in line is promoting, marketing and selling products within it. You know where the tunnel is and you start walking on it trying to find out where it leads to. Cluster analysis helps KPO Companies in India suggest brand strategies to clients. The agencies advice clients on how to position products, how to develop newer ones and ensure they are positioned such they sell exceptionally well and record good sales.
Finally, perhaps the most gratifying use of cluster analysis is to find test markets. Clients at times are really grateful to KPO Companies in India in helping them find out test markets. Many are unaware of the nature of a market such as this.
What is a test market? What importance does it lend to things in marketing?
It is a market where the performance, efficacy and sustainability of a product can be tested. It can be found out whether the product would survive the test of time or fail miserably. It is a market which helps find out loopholes in products.
Once the test market is selected, the product can be uninhibitedly put through a dry run and checked for. The flaws and drawbacks can be corrected, its performance improved upon.
When you segregate markets into clusters, you weed out those non productive ones which if used can become a liability afterwards. Rather, you use those which really produce the results you seek. In that limited selection, you use products that show results. You get to test all products, find out which ones fail and then be selective about the performing ones and push for them aggressively.
Marketing is a very intricate profession where you have to be extra selective with what you do and how you pursue it. Bungles lead to loss of opportunities which in turn lead to business slipping away.
Marketing methods such as clustering ease complicate processes and make achieving the desired goals a little easier. For organizations functioning in huge market spaces amid overwhelming competition, it is necessary such methods are used to make the path ahead transparent and easy to walk on.