Transcript Situational Analysis Customer Analysis

Situational Analysis
Customer Analysis
What Do We Need to Know
About Our Customers?
Framework for
Customer Analysis
Identify the relevant market
Tailor customer analysis to the relevant
market.
Which customers or customer segments
have needs/wants that can be satisfactorily
met with the products or services offered?
How do we identify the
relevant market?
Brainstorm?!
Use market definition to identify what level
of demand is most relevant.
Primary demand
Selective demand
Market Definition
Thirst
Primary
Demand
Milk
Soda
Ground
Secondary
Demand
Folger’s
Coffee
Whole
Bean
Starbuck’s
Instant
Millstone
Tea
Coffee
Bag
Gevalia
Juice
Primary Demand
Demand for product form or class.
Broad definition of relevant market.
Analyzing primary demand
involves...
Asking questions in two areas:
Buyer identification
Willingness-to-buy and ability-to-buy
Selective Demand
Demand for a specific brand or supplier
within the relevant market.
Consistent with defining narrow relevant
markets.
Associated with:
Analyzing selective
demand involves...
Understanding how customers make
choices from among alternative brands
within the relevant market.
Focus on specific decision processes and
determinant attributes.
Expanded 5-W Model for
Customer Analysis
Who are our current and potential customers?
5-W Model, continued
What do our customers do with our products?
5-W model, continued
Where do our customers purchase our
products?
5-W model, continued
When do our customers purchase our
products?
5-W model, continued
Why (and how) do our customers select
our products?
How are the needs of our customers
expected to change in the future?
What methods of payment do our customers
use when making a purchase?
Are our customers prone to developing close
long-term relationships with us and our
competitors, or do they buy in a transactional
fashion (primarily based on price)?
5-W model, continued
Why do potential customers not purchase
our products?
What are the basic needs of noncustomers
that are not being met by our products?
What are the features, benefits, or
advantages of competing products that cause
noncustomers to choose them over our
products?
Are there issues related to distribution,
communications, and pricing that cause
customers to not purchase our products?
What is the potential for converting these
noncustomers to our products?
How Do Firms Collect
Data?
Qualitative research methods
Focus groups
Interviews
Observation
Quantitative research methods
Surveys
Mail, phone, on-line, mall intercept
Experimental design