MKTG 353 Instructor: M.R.

Habibi

Mediamark Analysis: Identify and Target Market Segments

A common approach to consumer analysis is combining product usage information of demographic

segments with the information on the users' exposure to advertising media. The Survey of the
American Consumer by GfK Mediamark Research & Intelligence (MRI) provides a comprehensive
data source for such an analysis on the University Reporter
(https://www.gfkmrismartsystem.com/home.aspx).
The MRI service offers comprehensive demographic, lifestyle, product usage, and media data
collected from a single sample. The data provide strategic insights, consumer targeting, brand
trial/loyalty, promotional opportunities, and trade marketing.
The GfK MRI annually conducts personal interviews of 25,000 adults throughout the 48 contiguous
United States, uses self-administered questionnaires as well as measures readership of 225
magazines twice each year. The service provides data on the demographics, lifestyles, media
exposure and product usage of 6,500 products and services in 600 categories for the 226 million
adults, kids and teens in the U.S.

Learning objectives
Assignments in this module are designed to help you gain a thorough understanding of the MRI
database and get hands-on experience of its application, specifically, you
(1) Study the meaning of numbers and index in the database in the following pages;
(2) Learn how to access the data service with the University Reporter Tutorial;
(3) Practice retrieving information with the exercise Reading MRI Report;
(4) Infer missing information with formulas in the exercise MRIhelp; and
(5) Use data to support recommendations on target market segments and advertising
vehicles for appropriate strategies in the MRI Practice exercise and MRI Project.

MRI Data Base Definitions

(Refer to the file Reading MRI Report--Excel)
Base Total ‘000
Total number in the USA. For instance, total number of adults in US, or total number of men in the US. For
example, total number of adults in the US, according to GFK MRI spring 2018 report, is 247,024,000.
According to this table, total number of adult men is 119,259,000.

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What is the total number of adults with no college education, in the entire USA?

Answer: 99,546,000.

Please note that this numbers are the same regardless of the product type.

UNW
Unweighted or base counts:
Note that this number is no longer shown in the new version of reports prepared by GFK MRI
reporter. However, this number can be selected in “Reporter Option” tab to be shown in the reports.

UNW is the number of MRI respondents who meet the qualifications specified by the table
heading. That is, the number of participants in the survey conducted by GFK MRI.

‘000
Projected count (000): projected to the full population. That is, the number of users of the product
who belong to their corresponding row. For example, 110,322,000 adults bought at least a book in
the past 12 month prior to Spring 2018.
Similarly, 43,406,000 men bought a book in the past 12 month of spring 2018.

What’s the number of people with no college education who bought a book in the last 12 months?
Answer: 34,551,000.

Detail%
The percent of product users with a given characteristics (a row) as a percent of the total projected
users (Total ‘000).
For example, referring to Reading MRI Report, 28.73% of those who bought a book in the last 12
months attended college.

This percent is the result of 31,701,000 users who attended college divided by 110,322,000 total
projected users who bought a book in the last 12 months.

%Detail (row-i) = (‘000i/’000Total) * 100

When the row (in column A) represents demographic groups, the Detail Percent gives PROFILE of
the product users.
When the row represents media such as magazine, newspaper, TV and radio, the Detail Percent
gives media COVERAGE or RATING.
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What percentage of people who bought a book in the past 12 months are men?
Answer: 39.35%

Target%
The percent of product users who have a given characteristic (a row in column A), as a percent of
all people with that characteristic.
For example, referring to the Reading MRI Report, 44.82% of all adults, who attended college,
bought a book in the last 12 months. This percent is the result of 31,071,000 users who attended
college divided by adults attended college (70,724,000), shown in percentage.

%Target(row i) = (‘000i/Base Total ‘000i)*100

When the row (in column A) represents demographic groups, the Target Percent Across gives
market PENETRATION by the product.
When the row represents media such as magazine, newspaper, TV and radio, the Target Percent
gives COMPOSITION.

Question: What percent of men bought a book in the past 12 months?

Answer: 36.4%

Index
Index indicates the likelihood, compared to the total population, of the people in a given row being
the users of the product. The base number for comparison is 100.
For example, referring to the table Reading MRI Report, those who graduated college (graduated
college plus) have a usage Index of 129, which means that they are 29% more likely than the
general adult population to have bought a book in the last 12 months.
This number is the result of 57.42% (Target% of those who graduated college plus) divided by
44.66% (Target% of Total users) and then multiplied by 100.

Index(row-i) = (Targeti/TargetTotal)*100
Index(Age65+) = (45.64/44.66)*100 = 102 (People aged 65+ are 2 percent more likely to buy a book
than average adults in US)

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How to Read MRI Data

Using the demographic table in Reading MRI Report excel file, this is a sample reading of the MRI
data:
Of those who are in professional occupations, 54.3% bought a book in the past 12 months (column:
Target%.)
Or: That is, 54.3% of people with professional occupation bought a book in the past 12 months.
And 45.7% of them did not buy a book in the last 12 months (100%-54.3%).

Of all the adults who bought a book in the last 12 months, 17.5% are in professional occupations
(column: Detail%.)
Or: 17.5% of all adult who bought a book in the past 12 months have professional occupations

Regarding to the MRI usage index of 122, those who are in professional occupations are 22%
more likely than the general adult population to have bought a book in the past 12 months (column:
index.)

Using the media section of the Reading MRI Report Table, this is a sample reading of data:
Regarding to the Google Maps web site, There are about 49,511,000 visitors of Google Maps who
bought a book in the past 12 months (column: ‘000.)
Of all adult users/visitors of Google Maps, 49.7% bought a book in the past 12 months (column:
Target%.)
And, 44.88% of those who bought a book in the past 12 months visited Google Maps (column:
Detail%.)
Regarding the MRI usage index of 111, those visited Google Maps are 11% more likely than the
general adult population in buying a book (column: index.)

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Reading MRI Reports--Exercise

To enhance your skills in using the MRI data, please study the Excel file Reading MRI Report—
and answer the following questions.

1. What is your estimate number of adults in the United States in Spring 2018?

2. How many adults bought a book in the past 12 months?

3. What percent of those who aged 65 or older bought a book in the past 12 months?

Hint: Detail% or Target%?

4. What percent of those who bought a book in the past 12 months are professional?

5. What percent of those who bought a book in the past 12 months men aged 18-24?

Hint: Detail% or Target%?

6. What percent of those who attended college did not buy a book in the past 12 months?

Hint: Detail% or Target%?

7. Which one single demographic group would you recommend for target marketing for books?
Please support your answer with reasons.
Niche or mass marketing?

8. Which demographic variable would you recommend for market segmentation for selling books?

Hint: Find the spread between the highest and lowest usage index within each demographic
variable (see partition highlights in the table). Select the variable with the largest spread. It will be a
good segmentation factor that separate product users and non-users.

9. What are the top three segmentation factors would you recommend for selling books?

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Answers - Reading MRI Reports--Exercise

1- 247,024,000 adults
2- 110,322,000 projected number of users (those who bought a book in the last 12 months)
3- 45.64, %Target.
4- 17.5, %Detail
5- Unavailable. We don’t have men aged 18-24 in the Target column.
6- 44.82% of those who attended college bought a book in the last 12 months (%Target). So
55.18% of them did not (100%-44.82%)
7- Post graduates for niche marketing and Women and Graduate college plus for mass
marketing.
8- In class
9- In class

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Notes on Determining Target Segment and Marketing Strategy:

Detail% shows the size of a market segment.
Usage index shows the attractiveness of the segment.
Large index with large Detail%  Mass marketing target segment.
Large index with medium to low Detail%  Niche marketing segment.

Segment attractiveness indicators:

 Index
 Target% (degree of market penetration)

Indicator of useful segmentation factors:

 Large index spread within a demographic category

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A Sample of MRI Report

Southwest Airlines – Developing Marketing Strategies
Using MRI Database

Prepared by Dan Bui

As the Director of Marketing for Southwest Airlines, I am responsible for identifying profitable
marketing strategies for the company to pursue. Demographic information was obtained from the
MRI Database, which was then analyzed to identify target market segments. On examining the
data, the demographic variable that best separates Southwest Airline’s flyers from non-flyers is the
consumer’s household income (index spread of 188). Higher index spreads have stronger
implication of separation between Southwest Airline’s flyers and non-flyers. The index spread is
computed by subtracting the smallest index number from the largest index number in each
demographic variable. With the highest index spread amongst the demographic variables,
household income is a segmentation factor that Southwest Airlines should keep in consideration
when making marketing decision.
Niche Marketing Strategy
For the niche market, Southwest Airlines should focus their marketing strategies on consumers with
professions in management, business, and financial operations. This demographic segment has a
19.89 Detail percentage and an index of 208. This means 19.89 percent of Southwest Airline’s
flyers are employed in the management, business, and financial positions. Those who are employed
in management, business, and financial positions are also 108 percent more likely to fly with
Southwest Airlines than the general adult population.
The advertising budget for the niche market may be limited and it is recommended that a push and
sales promotion strategy be directed towards the niche market through Runner’s World magazine.
Runner’s World magazine has a 3.9 Detail percentage and an index of 296. This indicates that 3.9
percent of Southwest Airline’s flyers read Runner’s World magazine and general readers of
Runner’s World magazine are 196 percent more likely to fly with Southwest Airlines than the
general adult population.
Mass Marketing Strategy
Mass marketing enables advertisements to reach a larger audience and increase sales volume. If a
large advertising budget is permitted, mass marketing campaigns should be directed toward those
who have graduated college. College graduates have a 52.57 Detail percentage and an index of 184.
This suggests that 52.57 percent of Southwest airline’s flyers are college graduates and that college

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graduates are 84 percent more likely to fly with Southwest Airlines than the general adult
population.
College graduates can be reached through the website, Amazon.com. Amazon.com has a 48.59
Detail percentage and an index of 144. This means that 48.59 percent of Southwest Airlines
passengers access Amazon.com and that Amazon.com users are 44 percent more likely to travel
with Southwest Airlines than the average adult population.

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MRI Demographic: Index Spread 2014 Spring Reporter Gfk MRI

Travel
Domestic Travel - Airlines Used
Southwest Airlines
Target: Adults Index Index Spread
Total 100
Educ: post graduate 191
Educ: graduated college plus 184
Educ: attended college 95
Educ: graduated high school 55
Educ: no college 47
Educ: did not graduate HS 29 162
Age 35-44 118
Age 25-34 114
Age 55-64 113
Age 45-54 105
Age 65+ 76
Age 18-24 67 51
Occupation: Management, Business and 208
Financial Operations
Occupation: Professional and Related 159
Occupations
Occupation: Sales and Office Occupations 117
Occupation: Natural Resources, 73
Construction and Maintenance
Occupations
Occupation: Other Employed 54 154
HHI $150,000+ 214
HHI $75,000-$149,999 149
HHI $50,000-$59,999 92
HHI $60,000-$74,999 89
HHI $40,000-$49,999 65
HHI $30,000-$39,999 45
HHI <$20,000 32
HHI $20,000-$29,999 26 188
Race: Asian 125
Race: White 109
Race: White only 109
Race: American Indian or Alaska Native 88
Race: Other Race/Multiple Classifications 81
Race: Other 71
Race: Black/African American 68
Race: Black/African American only 68 57

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