Customer and consumer profiling Flashcards
What is a customer profiling?
Customer profiling involves collecting information about customers to understand their motives for purchasing products or services.
Buying motives
why they want the product
Four key elements of customer profiling
demographics, location, behavior, buying motives.
Location
where they are situated
Demographics
age, culture, income, occupation, marital status
Behavior
buying habits
two types of buying motives
rational and emotional motives
Rational motives
Are conscious purchasing decisions based on specific product requirements.
List five rational motives
reliability, durability, efficiency, ease of use, expense.
Emotional motives
are based on feelings and desires, often justified by customers thinking its rational.
List four emotional motives
self gratification, security, satisfaction, comfort or convenience.
How do business respond to rational motives
They use logical, straightforward marketing that highlights product benefits and key features.
How do businesses respond to emotional motives
They use marketing that appeals to feelings, emotions, love and freedom
What is competitor profiling
The process of identifying and analysing competitors strengths, weaknesses, strategies and market positions.
What does competitor profiling do ?
identifying competitors and comparing them, analysing product range, prices and marketing strategies.
Why should businesses use competitor profiling
identify market gaps, benchmark performance, predict competitor moves and perform strategic decisions.
SWOT Analysis
It is a tool that evaluates a company’s internal strengths and weaknesses, as well as external opportunities and threats.
What is the difference between SWOT and competitor analysis?
SWOT analysis assesses both internal and external factors of a business. Competitor analysis focuses on understanding competitors and their market position.
What does competitor profiling include
Product range, pricing strategies, marketing strategies, market share, brand position, customer base and strengths and weaknesses.
Ways to improve customer loyalty
Loyalty Programs (points based, tiers and subscription based programmes)
What is customer loyalty
Customer loyalty is when a customer trust a certain brand and would be more willing to shop at that brand compared to other brands.
Early adopter
Early adopters are people who get to try a product first in order to promote it (influencers) or to give feedback to the brand before the actual launch of the product.
Early adopter initiatives
exclusive access (first to try product), discounts (special pricing), Free trials (offers people to get access to a product/service before committing to actually buy it.)
Give an example of discount incentives
Apple have a program where they offer you a discount of the newest iPhone when you return an older model one.
Give an example of subscription incentives
Netflix offers a free trial to allow people to test out the streaming service before actually paying for it.
Give an example of exclusive access incentives.
Tesla offers a program for people to get a new model at a discounted price so that they can give them feedback on the product. This implements discount as well.
Market size
This size of potential demand and value of a market.
Market Share
Portion of the market size that is captured by a specific brand.
