MBA Promo Customer Analysis, Buying Behavior and Segmentation Professor Hussein Daffy Customer Analysis What do you need to know about your customers? What you need to know Who buys the product / service Who uses the product / service What customers buy How they use the product/services Where customers buy When customers buy How customers choose Why they prefer a product How they respond to marketing programs Will they buy it (again)? Daffy Professor Hussein Who buys and uses product / service A collection of actors/landfalls such Initiator (identifies need for product / service) Influencer (provides info or preference)
Decider (decides on spending the money) Purchaser (makes the purchase) user 2 Example: Replacement of Initiator: more convenient and efficient machines Influencer: production manager want good efficiency and happy employees Decider: administrator wants low cost Purchaser: agent wants good contract User: Operators want reliable and friendly usage machine Example: summer vacation Initiator: child wants fun Influencer: cousin wants place he has found Decider: father wants low cost Purchaser: mother wants happy family User: whole family wants to enjoy themselves 3 Expanded 5-W Model for Who are your current and potential customers?
Who are your former customers??? 5-W Model, continued What do your customers do with your products? 4 5-W model, continued Where do your customers purchase your 5 Why (and how) do your customers select our products? Why do they buy from you?
Decision rules Roles stress 8 Business Buying Behavior Buying Centers Evaluation Criteria Aspects of Business Buying Buying Situations Purchasing Ethics/ Rules and regulations Customer Service Buying process Decider Initiator Influencer/ Evaluator Center Roles Gatekeeper Purchaser Users 9 New Buy A situation requiring the purchase of a product for the first time. Modified Rebury A situation where the purchaser wants some change in the original good or service. Straight A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.
Buying Decision Grid Type of Situation Newness of Information Consideration the Problem Requirements of New Alternatives New Task High Maximum Important Medium Moderate Limited Low None 10 Time taken for decision Buying Situation Implications New Task No of people involved in buying centre Type of Buying Newness of the Problem Information Requirements Consideration Straight Rebury Minimal 11 New Task (rarest, most glamorous) Big DMS (decision-making unit) lots of people involved in the decision lots of people indirectly influence the decision Slower-than-usual process people think its’ a risky buy; novelty, precedent
Gather and weight a lot of information Anyone can win Your past relationship along won’t win the order New Task (continued) Performance matters a lot, price doesn’t so much The most influential people are knowledgeable users technically competent They set the specifications & then the game is 75% over Low ranking experts can be very influential High ranking non-experts often stand back 12 Effective Salespeople in New Task Understand DMS Understand needs, perceptions of you and of competitors In early, influencing specifications & views of the Come to be viewed as consultants (“creeping commitment”) Spend lots of time Analyze a lot
Bring in support troops Hussein Daffy Professor Small DMS (usually one person) Perceived low risk, hence low priority In a hurry Close-minded, arrogant, think they know it all Go on minimum acceptable quality (better doesn’t help) Then price and assured delivery 13 In Supplier “Out” suppliers find it hard to get an appointment, let alone break in Pray for the “in” supplier to screw up noticeably or for requirements to change (pressure from users, staff Modified Rebury A window of opportunity An “aging” new task Or a “rejuvenated” straight rebury Mini-version of new task strategy can make you the “in” supplier Then don’t screw-up 14
