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This document discusses competitor analysis and customer relationship management. It covers different types of competition a company may face from brands, within its industry, or from other industries that meet similar customer needs. It also discusses segmenting customers based on demographic, psychographic, geographic and usage characteristics. Finally, it discusses analyzing the value customers receive from a product or service and the value the organization receives from customer acquisition and retention.
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- 3. Competitor AnalysisBrand competition: A company sees its competitors as other companies that offer similar products and services to the same customers at similar prices. Volkswagen might see its major competitors as Toyota, Honda, and other manufacturers of medium- price automobiles, rather than Mercedes or Hyundai.
- 4. Industry competition: A company sees its competitors as all companies that make the same product or class of products. Thus, Volkswagen would be competing against all other car manufacturers.
- 5. Form competition: A company sees its competitors as all companies that manufacture products that supply the same service. Volkswagen would see itself competing against manufacturers of all vehicles, such as motorcycles, bicycles, and trucks.
- 6. Generic competition: A company sees its competitors as all companies that compete for the same consumer dollars. Volkswagen would see itself competing with companies that sell major consumer durables, foreign vacations, and new homes.Competitor Analysis Organizations also have to understand the competitive environment in which they operate, and be alert to changes that might signal opportunity or disaster. Additionally, a greater understanding of the external environment helps man agers appreciate the opportunities and threats facing their customers.
- 7. Segmentation Characteristics Demographic : age, income, education level, gender, ethnicity
- 8. Psychographic : attitudes, opinions, values, lifestyle
- 9. Geographic : availability of product
- 10. Usage : non-user, user of competing product, occasional user, frequent userSEGMENTATION
- 11. Value
- 12. Value of CustomerThe value the customer receives The value the customer receives derives from the total experience they have with both the core product and the product surround. In fact, customers are not buying goods or services, but specific benefits, which solve problems
- 13. ValueValue CreationValue AppropriationValue Consumption Value RenewalValue Transfer
- 14. Needs or Wants?
- 15. Value of Customer Survival needs (food, shelter, safety, and clothing) meaningful solutions
- 16. Attachment needs (love, belonging, friendship, family) meaningful connections
- 17. Esteem needs (con鍖dence, creativity, problem solving,respect for and by others) meaningful achievementsValue Process Meaningful marketers never push. They invite prospective customers in by creating marketing that appeals to the higher unmet needs in their overall lives.
- 18. Meaningful marketers know that most of our basic needs are satis鍖ed by the products and services we already buy..But that is not to say that the marketers of these basic products are exempt from creating marketing with meaningon the contrary. If you sell a commodity, the need and opportunities for you to create marketing whose meaning transcends your product are limitless.
- 19. Marketing itself must improve consumers lives and accomplish something of intrinsic value, independent of the product or service it aims to sell, whether or not people actually ever purchase it.
- 20. More meaning =more money. (The longer equation is more meaning = more loyalty higher prices = increased sales, but the net result is the same.)Value of the Organization Receives Fundamental to understanding the value the organization receives is understanding the economics of customer acquisition and retention
- 21. Value of Customer AquisitionThe starting point is to determine how much it costs to acquire customers in different segments and micro-segments through the organizations existing channels and mediaconsider how acquisition costs may vary across different channels and media. For instance, web sites have enabled companies to acquire customers at a fraction of the cost of other more traditional hannels.
- 22. Value of Customer Retention Customer retention and its economics It is generally acknowledged that it costs around five times more to win a new customer than it does to keep an existing one. Yet many companies still direct their marketing activity towards acquiring new customers, rather than keeping existing ones.