Questions to be answered include: How many potential customers fit the given definition and is this customer base growing or decreasing? Where are these customers geographically based? After explaining customer demographics, the business plan must detail the needs of these customers.
The business plan must also detail the drivers of customer decision-making. Sample questions to answer include: Do customers find price to be more important than the quality of the product or service? Are customers looking for the highest level of reliability, or will they have their own support and just seek a basic level of service? There is one last critical step in the Customer Analysis -- showing an understanding of the actual decision-making process.
Examples of questions to be answered here include: Will the customer seek multiple bids? It is essential to truly understand customers to develop a successful business and marketing strategy. As such, sophisticated investors require comprehensive profiles of a company's target customers. By spending the time to research and analyze your target customers, you will develop both enhance your business strategy and funding success.
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Please briefly describe your business and current situation below: Some agencies locate facilities based on proximity so as to serve an entire community. For example, the Houston Parks and Recreation Department has a multitude of branches because it serves such a large community. Today, the Houston Parks and Recreation Department manages parks and 56 community centers located throughout the city to accommodate its users Houston Parks and Recreation Department A third base of segmentation is psychographics.
Psychographics are lifestyle and personality descriptors. There is a relationship between lifestyle and consumer behavior Fullerton , so people with similar lifestyles buy similar products. Lifestyle descriptors are often categorized as activities, interests, and opinions. Behavioral characteristics are based on the product consumption habits of the consumers, the skill level of the users, and the product loyalty of the consumers.
Agencies must be cognizant of use levels and understand how products should be offered to meet the needs of a multitude of user levels. Think about how companies are increasingly recognizing their high-level users, such as with the Hilton Honors rewards program and airline frequent-flier miles.
The Chicago White Sox offer a variety of ticket packages, including a single-game package, a seven-game package, and season tickets. High-level users who purchase season tickets also receive many benefits such as gift packages, lower-priced parking, resell opportunities, and discounted suite prices Chicago White Sox Here are a few things to keep in mind when segmenting by behavioral characteristics Mullin, Hardy, and Sutton Understanding the skill level of consumers is valuable in knowing what products to offer to meet their needs.
Agencies can offer softball leagues for various skill levels or golf leagues for various golf handicaps. Finally, markets can be segmented by product benefits, because consumers seek certain qualities in a product. For example, Nike has shoes for basketball players, dancers, lacrosse players, and walkers. Each line of shoes offers the benefits the consumer is seeking.
For instance, the lacrosse shoes offer traction, comfort, support, and speed. Trek makes bikes for roads, triathlons, mountains, and bike paths, among others. Each bike has unique features, from the size of the tire and seat to how upright the rider sits. These two companies thus use benefits as one way to segment their markets.
Most agencies use one or more of the five market segmenting methods. The more data the agency has, the more able it is to select the best market and to utilize a marketing mix to reach that market. Once the market is segmented, the agency selects which market to target. Market segmentation and target marketing are keys to all aspects of marketing and ensure that agency resources are put to best use.
Haphazard marketing and mass marketing rarely attract the number of consumers sought. Consumer behavior involves the decision making and buying patterns of users. Although much information can be gathered through the segmentation process, there is still the matter of how customers decide to buy the products they buy.
Understanding consumer behavior is enhanced by knowing the consumer decision-making process. Consumers move through a four-step decision-making process figure First, they identify a need through media exposure, friends, family, self-awareness, or environmental factors. Next, they seek ways to meet the need through products and services, and they evaluate their options.
Once the options are evaluated, they make a purchase or experience a service. Afterward, the product or service is evaluated. Customers evaluate their satisfaction with the purchase decision and weaknesses of this choice. People mentally perform a cost—benefit analysis, measuring the costs of the product such as time or money in relation to the benefits they receive.
If the benefits outweigh the costs, the consumer is satisfied with the product purchase. If the costs outweigh the benefits, then the consumer is dissatisfied. Marketing can affect all levels of the consumer decision-making process.
For example, an agency can launch an advertising campaign to convince a potential consumer that a need exists, can make information readily available so the customer can make an informed decision about which product to buy, can make the purchase easy and can build the anticipation of the experience via e-mail messages or photos of past experiences, and can send reminders of the experience that has passed by giving certificates, providing photos, or making phone calls to follow up on the experience.
The customer analysis part of the marketing plan is all about market research and gathering data that provide insight into who the customer is, how to segment the market, and how the customer behaves. These data are the impetus for the next section of the marketing plan. Get the latest news, special offers, and updates on authors and products.
Market Research Market research is the systematic process of collecting, analyzing, and reporting information to enhance decision making throughout the marketing planning process Shank Market research is used to answer any number of questions about products and customers, including the following: Product Information Needs What do customers want from our products?
How do they view our products? What products do they use? How big is our market? Where and when do customers register for programs? How often do they participate in programs? How far do customers drive to use our products? Where do customers hear about our products? Market Segments and Target Markets Market research provides the ability to segment markets. Demographics Demographics are characteristics used to define a population.
Geography A second segmentation base, geography, focuses on geodemographics and proximity. Blue Blood Estates—People aged 45 to 64, predominantly White and Asian, established executives, old-money heirs, used to luxury and privilege, one-tenth are multimillionaires. Urban Gold Coast—People aged 45 to 64, predominantly White and Asian, highly educated, live in urban apartments and condos, few have children or own cars, very busy and affluent, many live in places like New York City.
American Dreams—Mixed age and ethnically diverse, immigrants, descendents from multicultural backgrounds, multilingual neighborhoods, married couples with and without children, high school education with some college, work in trades and public service jobs. Psychographics A third base of segmentation is psychographics.
Behavioral Characteristics Behavioral characteristics are based on the product consumption habits of the consumers, the skill level of the users, and the product loyalty of the consumers. It is wise to offer programs at all use levels so that light users can possibly increase to medium or heavy use over time. This ensures a steady stream of users. Levels of consumption will vary from product to product and by age group. Sales volume is more likely to increase by moving light and medium users up to medium and heavy users than by attracting first-time users.
Benefits Finally, markets can be segmented by product benefits, because consumers seek certain qualities in a product. Combining Segmentation Methods Most agencies use one or more of the five market segmenting methods. Consumer Behavior Consumer behavior involves the decision making and buying patterns of users. This Item is currently out of stock.
Health Care in Exercise and Sport. Health Care for Special Conditions. Physical Activity and Health. Physiology of Sport and Exercise.
Analyzing Customers in Your Business Plan The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must.
The customer analysis part of the marketing plan is all about market research and gathering data that provide insight into who the customer is, how to segment the market, and how the customer behaves. These data are the impetus for the next section of the marketing plan.
May 01, · A customer analysis is also known as a customer profile or target market analysis; and, it is an essential element of your company business plan. This analysis will determine your marketing strategy by identifying your customer base and ascertaining their needs, something which helps you develop Author: Jesamine. Follow this detailed guide to conducting customer analysis and segmentation and learn how to target your customers with the right messages. How to Conduct Customer Analysis and Customer Segmentation. This will obviously be reflected in marketing.
A customer analysis (or customer profile) is a critical section of a company's business plan or marketing plan. It identifies target customers, ascertains the needs of these customers, and then specifies how the product satisfies these needs. Analyzing your customer base is an essential part of succeeding in business. Customer analysis is a key part of any successful marketing plan, as well as.