Chapter 3 Flashcards
Typically done first including an examination of overall market characteristics, followed by an in-depth exploration of customer needs and related customer characteristics and behavior
Customer Analysis
is a combination of qualitative and quantitative research collected on your customers with the purpose of better understanding them in order to draw meaningful conclusions that will aid you in your marketing and outreach efforts.
Customer Analysis
allows you to determine the needs of your customers, the types of messaging they respond well to, and why they are or aren’t purchasing your product.
Customer Analysis
Armed with this information, you can make the changes necessary to increase growth.
Customer Analysis
Customer Analysis is consisting of:
MARKET ANALYSIS
CUSTOMER ANALYSIS
tries to establish the attractiveness of the overall market and potential segments within.
Market Analysis
involves answering a few questions.
CUSTOMER NEED ANALYSIS
IMPORTANCE OF CUSTOMER ANALYSIS
- Understand customer needs and preferences
- Better Customer Segmentation
- Identify customer behavior patterns
- Improve customer retention
- Enhance marketing strategies
- Optimize Product Development
Competitive analysis, also referred to as
Competitive Analysis
Is the process of identifying competitors in your industry and researching their different marketing strategies.
Competitor Analysis
You can use this information as a point of comparison to identify your company’s strengths and weaknesses relative to each competitor.
Competitor Analysis
Examines the competitors’ current positioning, strengths and weaknesses to spot opportunities for the firm
Competitor Analysis
HOW TO DO A COMPETITOR ANALYSIS
- Identify your competitors
- Create a competitor matrix
- Gather Background information
- Profile your competition’s target customers
- Focus on the 4 P’s
- Analyze the strengths and weaknesses – yours and your competitors’
What can you learn from competitor?
Identify your business’s strengths and weaknesses
Understand your market
Spot industry trends
Set benchmarks for future growth
It also examines the organization’s limitations or constraints, and how its values shape the way it does business.
Company Analysis
In an internal corporate analysis, the objective is to identify the organization’s strengths in terms of its current brand positioning and image, and the resources
the organization has (financial, human labor and know-how, and physical assets).
Company Analysis
How to Conduct a Company Analysis
- Set your objective
- Choose a framework
- Conduct Research
- Follow the framework
- Set your priorities
- Apply the findings
Establish goal or reason for conducting internal analysis
Set your objective
helps business leaders identify ways in which they can improve company function.
Internal Analysis
most important reasons to conduct internal an
analysis include identifying
- Company Strengths
- Structural Weakness
- Business Opportunities
- Possible Threats
- Viability in the marketplace
process is a three-step approach to marketing that helps businesses understand their target
market, develop a unique value proposition, and position their products or services in a way that is relevant to that market.
STP [SEGMENTATION, TARGETING, AND POSITIONING]
dividing the population of possible customers into groups.
Segmentation
Composed of a group of buyers who share common characteristics, needs, purchasing behavior, and/or consumption patterns.
Market Segment
WAYS TO SEGMENT A MARKET
- Geographic segmentation
- Demographic segmentation
- Psychographic segmentation
- Behavioral segmentation
- Needs-based segmentation
- Firmographic segmentation
Focus on Organization’s characteristics such as industry size and location
Firmographic segmentation
Is the process of segmenting your customers into groups based on their experience of a particular problem or need
Needs-based segmentation
Allows business to better understand the unique needs and preferences of different groups of customers, and tailor their products and marketing strategies accordingly.
Needs-based segmentation
This involves dividing the market into groups based on location.
Geographic Segmentation
example, a business might segment its market by country, region, or city.
Geographic Segmentation
This involves dividing the market into groups based on factors such as age, gender, income, and education.
Demographic segmentation
This involves dividing the market into groups based on factors such as personality, lifestyle, and values.
Psychographic Segmentation
This involves dividing the market into groups based on factors such as purchase behavior, usage rate, and loyalty status.
Behavioral Segmentation
are important to the consumer, but may not be
important for the buying decisions
Important attributes
often are further down on the list of service
characteristics important to customers.
Determinant Attributes
Differences between customers regarding
determinant attributes are therefore crucial for segmentation. (TRUE OR FALSE)
TRUE
is the practice of narrowing
down a target market into specific
segments of consumers with common
attributes and directing more
personalized marketing efforts toward
them.
Targeting
means providing a relatively narrow product mix for a particular target segment.
FOCUS
They identify the
strategically important elements in them
service operations and concentrate them
resources on them.
FOCUS
The extent of a company’s focus can be described along two dimensions
Market Focus
Service Focus
is the extent to which a firm
serves few or many markets,
Market Focus
Describes the extent to which a firm offers few or many services.
Service Focus
ACHIEVE COMPETITIVE
ADVANTAGE THROUGH FOCUS
- Fully-Focused
- Market-Focused
- Service-Focused
- Unfocused
provides a limited range of
services (perhaps just a single core product)
to a narrow and specific market segment.
Fully-focused
In a market-focused
strategy, a company offers a wide range
of services to a narrowly defined target
segment.
Market-Focused
offer a narrow range of services
to a fairly broad market. Values and
delivers high quality, professional,
responsive and innovative service to
all customer
Service-Focused
they try to
serve broad markets and provide a wide range
of services. The danger with this strategy is
that unfocused firms often are “jacks of all
trades and masters of none”.
Unfocused
the unique place that
the firm and/or its service offerings
occupy in the minds of its consumers.
POSITIONING
is concerned with creating, communicating, and maintaining
distinctive differences that will be noticed and valued by those customers the firm would
most like to develop a long-term relationship with .
Positioning Strategy
Positioning strategy also known as a
market or brand positioning strategy
FOUR TYPES OF POSITIONING STRATEGIES
Product Price
Unique Value Proposition
Product Quality
Competitive Positioning
A reliable differentiation strategy is to link your product with a
competitive price point.
Product Price
Highlight the features and benefits of your product as uniquely equipped to meet the
specific needs of your customer base.
Unique Value Proposition
Customers are accustomed to paying more for higher product
quality, whether real or perceived.
Product Quality
This strategy involves directly comparing your product
with your competitors’ to show how yours is better or unique.
Competitive Positioning
PRINCIPLES OF POSITIONING
- A company must establish a position in the minds of its targeted customers.
- The position should be singular, providing one simple and consistent message.
- The position must set a company apart from its competitors
- A company cannot be all things to all people — it must focus its efforts.
Four basic elements to writing a good positioning statement
Target Audience
Frame of reference
Point of difference
Reason to believe
the specific group(s) of people that the brand wants to sell to
and serve
Target Audience
the category in which the brand is competing
Frame of reference
the most compelling benefit offered by the brand that stands
out from its competition
Point of difference
proof that the brand can deliver the benefits that are
promised.
Reason to believe
IMPORTANCE OF POSITIONING
- Helps businesses to standout
- Target specific customer segments
- Increases profitability and enhances brand reputation
- Drives competitive advantage
