Understanding Customer Analysis an Important Business Plan & Market Segmentation

Sep 12 • General • 1716 Views • No Comments on Understanding Customer Analysis an Important Business Plan & Market Segmentation

Customer Analysis is one of the important piece of Business Plan. Its the process to identify, evaluate the distinguished characteristics of a base of customers inorder to understand the customer needs, purchasing behaviour, motivation, value orientation for the purpose of market segmentation & to target the market. In order to make your business successful you need to demonstrate who will buy your products or services. One need to identify the customer segments. First we have to indentify the target customers, convey their needs, and demonstration of how its products & services satisfies their needs. It will help to retain the customers.

For developing an effective marketing programme and communicating the meaning of the brand it is very necessary to analyse the customers you are serving. For a efficient analysis the marketer need to know few question about the customers. These Questions would be like :

Who would buy and use the product?
What they buy and how will they use it?
What are the location for purchase?
What is the time of purchase?
How do they select the product?
Why would they prefer a particular product?
What is their response to the marketing efforts?
Will they purchase the product again?

When the marketer focus on who buys the product it means that in organization or in houses who buys the product, which is been divided into different categories:

Customer Analysis an Important piece of Business Plan

The initiator who decides that there is need of the product
Influencer, who influences the purchase decision
The decider who makes the final decision of the purchase
Purchaser, who makes the final purchase
User, who uses the product

Major segmentation Variables for Consumer Markets:

Geographic Segmentation (region, climate, density, city)
Demographic segmentation ( age, gender, income, family, religion, nationality, education, race,occupation)
Psychographic segmentation (attitude, lifestyle, personality)
Behavioural segmentation (occasion, usage, loyalty, readiness for product, user status, benefits)

The “What” in customer analysis deals with the type of product the customer purchases which would include the brand purchased, amount paid for it and the features delivered by it.

Benefits: The firm produces features but customers purchase benefits. Recognizing this distinction and producing a products or services that provides benefits to solve the customers’ problems better is what a product manager should do. Focusing on benefits is also important in understanding the competitive set.

For identifying whether the customer is a potential customer or not it is decided the way they relate to the product. There are different stages in which the customers can be categorized are: