Customer Analysis & Competitor Analysis Flashcards
(22 cards)
3 elements of customer analysis
Customer segmentation
Understand customer motivation
Understand unmet customer needs
What does a successful customer segmentation require?
Evaluation of competitive offerings
Why practice customer segmentation?
Markets are heterogeneous
Better reach specific needs
Can improve target marketing & positioning
Challenges of customer segmentation
Higher costs
Instability from changing customers
How can the challenge ‘higher costs’ of customer segmentation be mitigated?
Looking for synergies across product line
Developing an umbrella advertising campaign
How can the challenge ‘instability’ of customer segmentation be mitigated?
Looking for markets with high growth and few competitors
2 methods of customer segmentation
Based on customer characteristics
Based on product-related approaches
Examples of customer segmentation based on customer characteristics
Sociodemographic
Behavioural values/lifestyles
Examples of customer segmentation based on product-related approaches
User frequencies
User types
Price sensitivity
Effect of understanding customer motivation & unmet needs for the firm
Opportunity to increase market share
New product offerings
Ability to break into a new market
Effect of understanding customer motivation & unmet needs for the customer
Purchase behaviour
Satisfaction
2 goals of competitor analysis
Identify competitors
Understand competitors
2 methods for identifying competitors
Customer-oriented method
Strategy-oriented method
What is customer-oriented method
Identify competitors by the customer’s choice or consideration sets
What is strategy-oriented method
Organize firms that pursue similar strategies and have similar assets and characteristics
When would the strategy-oriented method be more useful?
B2B
Industry with similar substitute products
Common areas of strengths and weaknesses for the firms
Innovation
Operation
Finance
Management
Marketing
Customer base
Where to find information on competitors
Competitor website
Advertising
Press releases
Financial reports
Social media
Own market research
Distribution channels
2 types of hints of troubled competitors
Behaviours on improving cash flow
Behaviours showing lack of market leadership
Examples of behaviors on improving cash flow
Shrinking workforce
Price increases
Cuting R&D aand Marketing investments
Examples of behaviors showing lack of leadership
Frequent changes in advertising messages
Frequent product failures
Frequent changes in senior management
Hints of future competitors
Market expansion
Product expansion
Forward & backward integration
M&A of resources
