23609566 Customer Analysis

8/7/2019 23609566 Customer Analysis

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12/03/09 Dr. Kartik Dave 1

CUSTOMER

ANALYSIS


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RECAP.

Marketing is the management process

that seeks acquisition, retention, andenhancement of business from the targetcustomers

with the objective ofgrowing shareholder value

by anticipating, understanding, and shapingcustomer value and

by developing and executing strategies fordelivering consistently superior value to

customers at a long termprofit to the company in a way that preserves orenhances the

customers and the societys well-being.


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Most of the business firms suffer from three

kinds ofmarketing myopia.

Defining business in terms of product andnot customer need.

Defining business in terms current servedmarket and not latent need.

Defining business in terms of portfolio of

certain businesses and not competencies.


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For marketing to become the central purposeof business, everybody in every function must

put the customer at the centre of the

business; that is marketing must be the

guiding philosophy of the organization.

Greater a businesss market orientation, the

greater is the business profitability.


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This is because market orientation facilitates

an organizations innovativeness which is

one of the most important core value-

creating capabilities.
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Long-run successful companies

firmly believe in the principle of

customer (market) orientation and

make it operational on a company-wide basis.


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In todays world of competitive offerings,

diversity of consumer preferences and

proliferation of brands, consumer behaviorhasbecome extremely important for marketing

decisions.

Consumer behavior provides the behavioral fit

to marketing mix which need to be changed

from time to time by marketeers.


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A Snapshot of Consumer Behaviour

ConsumerDecision

Making

Group factors

Marketing Mix

elements for thetarget segment

(in a given

environment)

Consumer Behaviour

Psychological factor


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THINGS TO BE DISCUSSED.

Stimulus Response Model of ConsumerBehaviour

Buyers Characteristics

Consumers Buying Decision Process

Business Customers Buying DecisionProcess

Traditional VS Modern Marketers view of

Customer Understanding Shifting Customer Value


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CONSUMER AND CUSTOMER

The consumer is the final user of goodsand services.

Customers are intermediate people ororganizations (e.g., a family member, aretailer, a purchasing officer of anorganization) who buy from the company

or its distributors. It is necessary to understand the needs ofthe end consumer, as well the needs ofcustomers.


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A STIMULUS RESPONSE MODEL OF

CONSUMER BEHAVIOUR

External Stimuli Buyers Black Box Buyers Decision

EnvironMentalfactors

Economic

Social

Political

Techno-logical

Market-ing

factors

Product

Price

Adver-tising

Distri-bution

Buyercharacter

istics

Cultural

Social

Personal

Psycho-logical

Buyerdecisionprocess

Recognitionof problem

Search forinformation

Evaluation

Decision

Postpurchase

behaviour

The choice of:

Product

Brand

Dealer

Quantity

Purchase timing

Inputs Outputs


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BUYERS CHARACTERISTICS

CulturalSocial Personal

Psychological

Buyer

Culture

Subculture

Social class

Referencegroups

Family

Roles andstructures

Age and

life-cyclestage

OccupationEconomicCircum-

stances

Lifestyle

Personality/self-concept

Motivation

Perception

Beliefs andattitudes

Learning


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Value conscious; price sensitive.

Importance of celebrating festivals.

Food habits. Mythology

Shopping as a Ritual

INDIAN CULTURAL

CHARACTERISTICS
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The following values can be associatedwith this segment:

Success through professionalachievement and consumeproducts/brands that reinforce a feelingaccomplishment in the individuals andperceived as rewards.

Involved in high-tension, fast-paced jobsand hence prefer time-compression orconvenience products.

CHANGING CULTURAL TRENDS

IN INDIAN URBAN MARKET


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Middle-of-the-road approach totradition: neither too permissive nor

too traditional in their approachtowards rituals and other culturalpractices.

Impulse gratification: Neo-urban

young adults exhibit a compulsiveneed to buy products and servicesthrough credit cards.

CHANGING CULTURAL TRENDS

IN INDIAN URBAN MARKET
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The new Emerging Lifestyles of UrbanConsumers

Labelled, Urban, Chilled, Kicked-with-life Indians or the

LUCKIES Marked by multiple credit cards, off centre job options,

recycling initiatives, a generation much aware aboutalternatives and sporting a choicy selection. (These arereferred to as Global Nomads by Radhika Chopra-DSE)

Confident communicators and can flourish in a global,competitive market.

Living in style is the in-thing.

Believes in looking good. Ravaged by labels.

Working hard by day and clubbing all night.

T.V has played a major role.


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A rural consumer is looking forfunctional value, not frills.

High involvement in the purchase ofany product.The decision making is a collectiveprocess governed by social values.

They are more brand loyal than theirurban counterparts.Word-of-mouth recommendations byusers influences purchase decisions.

UNDERSTANDING THE RURAL

MINDSET


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The family is the most important

consumer-buying organization in thesociety.

Family members

constitute the

most influentialprimary reference

group.

Social Characteristics ..

THE FAMILY AND ITS ROLE INPURCHASING DECISIONS
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THE FAMILY AND ITS ROLE INPURCHASING DECISIONS

In a traditional society, whereextended family is still the norm,

the elders of the family influencethe buyers behaviour significantly.

In modern society, where nucleus

family is the norm, the buyingbehaviour is influenced by thespouse and children.


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Personal Characteristics.

A FAMILY LIFE CYCLE MODEL

Bachelor

Newlymarried

Nochildren

Full NestISmall

Children

Full NestIIGrown updependent

children

Empty NestIChildren not

livingat home

Empty Nest

IIRetired

Children notliving

at home

Typical age range

0 - 25 25 -50 50 +

Single: Always Single; Divorced: Widowed


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PSYCHOGRAPHIC PROFILES OF

INDIAN MALESTHE TRADITIONAL (35%)

Conservative, driven byvalues

Cherishes family andeschews ostentations

Social conformist

Mostly married Buys on the basis of

value for money


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THE SOCIAL CHAMELEON(17%)

He is a hypocrite of sorts whocraves to project a politically

and socially correct image.Tech-savvy and individualistic.

The majority are between 30 and40 years of age, executives, andpost-graduates.

Believes in what others think ofhim.

Buys on the basis of what willimpress others.

Definition of success:money+recognition.


INDIAN MALES


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THE INTRINSIC PROGRESSIVE(7%)

He believes in family-values,

equality of the sexes, and is notconfined by tradition. The Intrinsic Progressives are

mostly young and unmarried, andexecutives.

Buys on the basis of quality; driven

by rational reasons. Appearance: likes being fit and

looking good. Definition of success: achievement

& family.


INDIAN MALES


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WHO IS SHE?Is outgoing, competitive,and likes completefreedom.Hates the "suffering

woman" stereotype.Has a post-graduatedegree, is below 30 years,married or unmarried.

WHERE IS SHE FOUND? Mumbai 30% Kolkata 25%

Kochi 22%

MARKETER APPEALBig spender and has thehighest disposable incomeamong all women.


INDIAN WORKING WOMEN

EXTROVERTEDEVE


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Autonomous in decisions: An extroverted Eve is below 30 years. She earns more than Rs 10,000 a

month, enjoys her freedom, has a large circle of friends, it's vital for her to have a good figure and appear

smart, can't stand the suffering women types, is a strong believer of working for fulfillment and is a go-

getter. Nuclear family makes sense.

Her lifestyle : Highest disposable income.

About 55 per cent own cell phones, 17 per cent own cars.

They save the highest (38 per cent of income) among all segments, and are also the highest risk takers

with 11 per cent of them investing in stocks.

About 11 per cent wear Western formals to office (highest among all segments) 30 per cent have gone on

a diet in the last one year.

They love going to the movies and shopping at malls.

Their favorite celebrity is Shah Rukh Khan.

Says Aparna Sen, director, client service, ACNielsen ORGMARG: "The Extroverted Eve is not ingratiatedto society for granting her empowerment and freedom she believes she has earned it on her own merit

and must enjoy it fully.

Her extrovert nature is a clear manifestation of this and typifies today's 'go-getter', focused on making the

most of her achievements."
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WHO IS SHE?Likes to stretch her means abit in pursuit of living it up.Believes it's no joy being asimple housewife.

Is a graduate, about 30years old, and junior ormiddle-level executive.

WHERE IS SHE FOUND?

Indore 36% Delhi 32%Kanpur 28%

MARKETER APPEALSelf-indulgent, has a highpropensity to spend.



EXTRAVAGANT ASPIRER


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Very spendthrift: She is in her 30s, loves to travel on her ownand splurges on lifestyle products, irrespective of the price.Departmental stores and supermarkets are her preferred

shopping areas. It's very important for her to be attractive andshe believes that there is no joy in being a housewife.

Her lifestyle: Self Indulgent.

Only 40 per cent own cellphones and 12 per cent own apersonal car.

She spends maximum part of her salary (69 per cent) and savesthe least.

According to Aparna Sen, "The extravagant Aspirer embodiesthe 'because I'm worth it' philosophy. She is distinguished from

her contemporaries by her conspicuous consumption. For her,what she does, what she buys and where she buys it define herand, are in fact, the elements that comprise her self-identity."


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Broad-minded: Almost one-third of working women fall in this category.

She is over 30 years, liberal, openly discusses sex with her friends,and chooses her own life partner.

She is very independent, believes in freedom of dressing up and doesnot compromise on quality only the best will do.

Brand consciousness and earning money is very important to her.Only 25 per cent are postgraduates.

Her lifestyle: About 37 per cent own mobile phones.

Driven by practical consideration when it comes to spending, shebelieves in keeping the family before herself.

Only about 69 per cent say they have complete freedom (lowestamong all segments) in spending money exactly the way they want to.

Always going for branded commodities, she is a value-seeker.The highest percentage of credit card holders falls in this category.

Says Aparna Sen: "The Egalitarian Enabler enjoys her emphasis onthe 'equality of the sexes'. For her, it's all about getting as much fromlife as her male counterpart no more, no less."


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WHO IS SHE?Believes in joint families,following customs, and saving fora rainy day.

But is driven to personalexcellence.Is the oldest among all thesegments (average age: 37), and acautious spender.

WHERE IS SHE FOUND?

Kolkata 47% Indore 38%

MARKETER APPEALAmong all segments, spendslowest on branded groceries.



Traditional Individualist


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Tough cookie to crack: They account for about 17 per cent ofworking women.A Traditional Individualist is conservative, strongly believes intraditional values, joint families, and is proud of wearingoutward symbols of marriage.

Believes in savings and hates sharing. Is the oldest amongst allsegment (average age is 37 years) and the highestconcentration is in Kolkata.

Her lifestyle: Only about 30 per cent own a mobile phone.

97 per cent wear Indian ethnic wear.

Cautious spenders. 40 per cent have visited a mall lately thelowest among all segments.

Spends the lowest on branded stuff.

Says Aparna Sen: "They strongly believe in the fact thatconventions have their merit, and for this reason must beadhered to without compromise. Despite any obvious notions of'modernity and liberation' pervading society around her, shebelieves that the mores of the past must be honoured."


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WHO IS SHE?Believes women shouldn'tdrink, divorce, or wearwestern clothes.Would rather not havesanitary napkins and suchother products advertised.Being more family-centric, isusually a part-time worker.

WHERE IS SHE FOUND?

Bangalore 32% Kochi 27%Kanpur 20%

MARKETER APPEALVery little. Set in her ways, notopen to change.



ORTODOXAUSTERE

Very rigid: Straight beliefs simple looking Believes that women


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Very rigid: Straight beliefs, simple looking. Believes that womenshouldn't drink, divorce or wear Western clothes.

Is hardcore traditional and does not budge. Very devoted anddedicated. Doesn't seek any help from family members, doesn't want tospend any money on herself and feels personal products should not be

advertised on TV. Very thrifty and price-conscious.Her lifestyle: Believes in saving in jewellery (highest among allsegments).

Lowest credit card ownership among all segments.

Close to 55 per cent don't visit beauty parlours.

Not very involved in decision-making for durables with the highest percent (15) among all segments, saying they have very little or no role inpurchase of durables.Large proportion is very religious and for half of them, the favouriteactivity is going to a place of worship.

As Aparna Sen puts it: "The Orthodox Austere working women struggleto straddle the roles of the traditional home-maker and the professionalgo-getter. For them, independence also means non-reliance on anyoneelse, perhaps because depending on someone may seem a sign ofbeing inadequate or unequal to the task of playing the role of bread-winner and roti-maker with equal aplomb."


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PSYCHOLOGICAL FACTORS

A persons buying choices are

influenced by four major

psychological factors:

Motivation

Perception

Learning

Beliefs and attitudes


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MOTIVATION

According to behavioural scientists,basic human needs are at the root of

all behaviour.Needs arise out somedeprivations/problems that a personis having.

A need becomes motive when it isaroused to a sufficient level ofintensity to drive a person to act.


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HIERARCHY OF HUMAN NEEDS

Self-Actualization

Needs(self-development

and realization)

Esteem Needs(self-esteem, recognition, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)


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Motives remain primarily in the

unconscious mind, which makes them

nearly impossible to fully understand or

predict in a conscious level.

When the sub-conscious mind perceives

an opportunity to meet a basic need, it

stimulates emotion, which makes the bodyto act toward satisfying the need.

MOTIVATION


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Emotion is defined as root impulses to act;the instant plans for handling life.

Because these emotions result inbehaviour, they serve as an importantbridge in helping consumers identify theirunconscious needs and take appropriateand immediate action to satisfy them.

MOTIVATION


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Beyond bridging the gap betweenconsumers unconscious needs and thebehaviour required to satisfy them,emotion also works in tandem with reasonby bringing balance to the consumerspurchase decision process.

The human mind can be thought of in two

parts: one that thinks and one that feels.

MOTIVATION


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HUMAN MIND


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When passions surge, the emotionalside holds the rational side captive,dominating the decision making

process. Emotions actually stimulate the mind

3000 times faster than regular thought.

In many situations emotion moves aperson to act well before the rational

mind has had a chance to catch up.

MOTIVATION


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Emotion also plays a part in more

carefully considered decisions.

Once a choice has been made, there isan emotional response to the final

answer.

This explains why emotion is sopowerful and persuasive in determining

the outcome of many purchase

decisions.

MOTIVATION


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PERCEPTION, LEARNING,

BELIEFS AND ATTITUDES How a motivated person actually acts is

influenced by his or herperception of the

situation, learning, beliefs and attitudes.

Perception is the process by which an

individual selects, organizes, and

interprets information inputs.

Learning involve changes in anindividuals behaviour arising from

experience.


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PERCEPTION, LEARNING,

BELIEFS AND ATTITUDESA belief is a descriptive thoughtthat a person holds about

something.An attitude is a persons enduringfavourable or unfavourable

evaluations, emotional feelings,and action tendencies towardsome object or idea.


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ATTITUDE AND ITSCOMPONENTS

Components Hierarchy-of-effects

Cognitive AwarenessKnowledge

Affective LikingPreference

Behavioural Intention to buyPurchase


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DIFFERENT ROLES IN BUYINGDECISIONS

Initiator: A person who firstsuggests the idea of buying theparticular product or service.Influencer: A person whose view oradvice influences the decision.

Decider: A person who decides onany component of a buyingdecision.


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DIFFERENT ROLES IN BUYINGDECISIONS

Buyer: The person who makes the

actual purchase.User: A person who consumes oruses the product or service.


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BUYING DECISION PROCESS

Buyer

Recognitionof needs

Evaluationof options

PurchaseDecision

Postpurchasebehaviour

Changesovertime

Informationsearch

SUCCESSIVE SETS INVOLVED IN


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SUCCESSIVE SETS INVOLVED INCONSUMER DECISION MAKING

Total Set

Awareness Set

Consideration Set

Choice Set

Buying Decision


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SPECIAL FEATURES OF BUSINESSCUSTOMERS BUYING PROCESS

More persons typically participate

in industrial buying decisions. The decision participants usuallyhave different organizationalresponsibilities and differentcriteria to purchase decision.


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Professional purchasing which is

performed by buyers who oftenwork as a part of a buying teamand employ a greater degree ofovertly rational thinking than isgenerally the case in consumermarkets.

SPECIAL FEATURES OF BUSINESSCUSTOMERS BUYING PROCESS


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BUYING TEAM MEMBER ROLES

The initiator is the person withinthe firm who realizes the

acquisition of a product or servicecan solve or avoid a problem.

The gatekeeper controls the flow

of information in and out of thefirm and provides vendors accessto key personnel.


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The influencer guides the selectionprocess by expressing preferences

or recommending vendors orofferings.The decider has ultimateresponsibility for determining

which product or service will bepurchased and for choosing thesupplier.

BUYING TEAM MEMBER ROLES


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The buyer is the individual who

negotiates with the vendor andformally executes the purchase oracquisition.Finally, the user is the individualwho employs the acquired productor service.

BUYING TEAM MEMBERS ROLES


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WHAT THE BUYING-TEAM

MEMBERS WANT?Each buyer-team member attemptsto maximize his gain or minimize his

loss from the purchase situation.Buyers segment the potentialbenefits into financial, product-service, social, and personal.

Not all promised benefits will beequally desired by all the buying-centre members.


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Because customers are assumed

to make choices based onfeatures, product features areviewed as a key tool for

differentiating a companysofferings from competitiveofferings.

TRADITIONAL MARKETERS

CONCEPT OF CUSTOMER


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Benefits arise from functionalfeatures.

Benefits are performancecharacteristics that customersseek from products.For toothpaste: cavity protection,

tarter control, and whitening; forpersonal computers: speed,connectivity, and portability.

TRADITIONAL MARKETERS

CONCEPT OF CUSTOMER


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For an modern marketer, customersare emotionally as well as rationallydriven.

That is, while customers may befrequently engage in rational choice,they are as frequently driven by

emotions because consumptionexperiences are often directedtoward the pursuit of fantasies,feelings, and fun.

MODERN MARKETERS CONCEPTOF CUSTOMERS


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FIVE TYPES OF CUSTOMEREXPERIENCES

The five types of consumptionexperiences are:

Sense: sensory experiences throughsight, sound, touch, taste, and smell.Feel: affective experiences throughinner feelings and emotions that

range from mildly positive moodslinked to a brand to a strongemotions of joy and pride.


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Think: cognitive problem-solvingexperiences.Act: physical experiences,alternative lifestyles, andinteractions.Relate: individual experiences

relating the individual to his orher ideal self, other people, orcultures.



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Holistic

ExperiencesSense

Feel

ThinkAct

Relate



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In other words, customers are

motivated by five value drivers:

Product

Money

Equity

Experience and

Energy

MODERN MARKETERS CONCEPT

OF CUSTOMERS


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The five value drivers break down the

traditional value equation:

Cost (Money and Energy) and

Benefit (Product, Equity, andExperience)

More importantly, these drivers can also be

grouped under two components: Rational (Product, and Money)

Emotional (Equity, Experience, and

Energy)


OF CUSTOMERS


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MODERN MARKETING MODEL

Product

Money

Equity(trust)

Experience(relationship)

Energy(convenience)

Rational Emotional

Value


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Product and Money are customer prioritiesbased on logic.

Both are minimum critical as quality productsand competitive pricing are the cost of entryin todays market.

However, it is becoming increasingly difficultto sustain competitive advantage either byoffering new features, additional features,

getting to the market faster than the rest orby low prices.

Product and price are simply too easy toreplicate.


OF CUSTOMERS


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In stark contrast to Money and Product,are the three other value drivers Equity, Experience, and Energy.

These are called Emotional Es. They not only provide opportunities for

clear differentiation from thecompetition, but research shows theyactually drive the majority ofdecisionsto purchase.


OF CUSTOMERS


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Equity is a combination of a trust a

brand earns and an identity that allows

consumers to feel emotionally

connected.

Experience deals with customers

interactions with a brand.

In every encounter there is anopportunity to meet a need and make

an emotional connection.


OF CUSTOMERS


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Energy is the investment oftime and

effort a customer make in a product

or service. Is it easy? Accessible? Worthwhile?

Energy means offering convenience

and saving time.


OF CUSTOMERS


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CUSTOMERS EXPERIENCES

Business is very much about theexploration and improvement of

customers real life experiences.Managers must understand deeplyand act decisively on the specific

experiences the customers wouldmost value.


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UNDERSTANDING CUSTOMERSRESULTING EXPERIENCES

For understanding customersexperiences managers must needto become customers rather thanlisten to customers so much.

This means, not asking customersfor direction, but systematically

learning what it is like to live thecustomers life; to be, think, andfeel like the customer.


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THE BUYER EXPERIENCE CYCLE


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Purchase Delivery UseHow long does it take

to find product youneed?

Is the place of purchaseattractive & accessible?

How secure is thetransaction environment?

How rapidly can youmake a purchase?

How long does ittake to get the

product delivered?

How difficultis it to unpack &

install thenew product?

Does the productrequire training or

expert maintenance?

Is the product easyto store when not in

use?

How effective are

the productsfeatures andfunctions?


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Supplements Maintenance Disposal

Do you need

other productsand services to

make thisproduct work?

If so how costlyare they?

Does the product

require externalmaintenance?

How easy is it tomaintain andupgrade the

product?

Does use of the

product createwaste items?

How easy is itto dispose ofthe product?


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Within each of these stages,depending on the needs of theindividual buyer, there will be fewcritical interfaces between buyer andseller that will drive the customersperception of value and the decision

whether or not to buy again. These are often called moments oftruth.

UNDERSTANDING CUSTOMERSRESULTING EXPERIENCES


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When a marketer explore the customersexperience cycle, the marketer can learnwhat exactly is valued in a purchase thatis, the whole package, the entire contextof that purchase.

The next essential step is understandingwhy the customer wants this package.

A marketer have to see beyond the desiresexpressed by the customer to thecustomers unarticulated (silent) needs.

UNDERSTANDING CUSTOMERS

RESULTING EXPERIENCES


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Many companies are embracingethnography to understand the silentneeds of customers.

Ethnography, a branch of anthropology, isdefined as the scientific description ofpeoples and cultures.

An ethnographer is a species of

anthropologists that study people todetermine what is missing in their lives. They then work with designers and

engineers to dream up these products.




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The beauty of ethnography, say itsproponents, is that it provides a richerunderstanding of consumers than does

traditional research. Companies are still using focus groups,surveys, and demographic data to gleaninsights into the consumer's mind.

But closely observing people where theylive and work, say executives, allowscompanies to zero in on their customers'unarticulated desires.





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While many companies embrace ethnographyto create something new, others are using itto revitalize an existing product or service.

In 2004, Marriott hired IDEO Inc. to rethinkthe hotel experience for an increasinglyimportant customer: the young, tech-savvyroad warrior.

This was all about looking freshly at businesstravel and how people behave and what theyneed.





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To better understand Marriott's customers,IDEO dispatched a team of sevenconsultants, including a designer,anthropologist, writer, and architect, on a six-week trip.

Covering 12 cities, the group hung out inhotel lobbies, cafes, and bars, and askedguests to graph what they were doing hour by

hour. What they learned: Hotels are generally good

at serving large parties but not small groupsof business travelers.





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Researchers noted that hotel lobbies tend tobe dark and better suited to killing time thanconducting casual business.

Marriott lacked places where guests couldcomfortably combine work with pleasureoutside their rooms.

Marriott accordingly reinvented the lobbies ofits hotels, creating for each a social zone,with small tables, brighter lights, and wirelessWeb access, that is better suited to meetings.





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Another most powerful tool for ferreting outthe silent, unarticulated, and, at times,unknown priorities is analysis of

customers system economics, regardlesswhether the marketer is dealing with anindustrial buyer, a family, or an individualcustomer.

Most customers do not know their ownsystems economics.





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A customers system economics includes

the amount paid for the product or service;

the costs to use, store, and dispose of it;

the time consumed in the purchasetransactions and the usage pattern;

and the amount of hassle that has to betolerated or paid out throughout the entireprocess.





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The fact that most customers do not know

their own true systems economics, offers a

great opportunity to suppliers for profitgain.

Disney streamlined the hassle out of the

family vacation. Intel made it easy for its industrial

customers to apply its chips.





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Microsoft gave the customer standards,ease of use, and a world-beating basket ofapplications.

Really knowing the customers systemeconomics brings enormous benefit tosuppliers.

It puts them in a legitimate position toanswer the question:

How can we really add value to thecustomer?




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UNDERSTANDING SHIFTING


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To create a strategic and dynamic

perspective on the customer, one

must have a clear and compelling

point of view of one question:

Exactly how is the customer

changing?


CUSTOMER VALUE



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Traditional market research models tryto measure customers over time byperiodically asking them a set of

questions and measuring change. This kind of episodic market researchresults in backward-looking insight.

Strategic customer analysis demands

moving beyond this episodic approachto creating a continuous dialogue withthe most important customers.


CUSTOMER VALUE


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Fords market share went from nothingto 55 percent and it became theundisputed leader of the automotive

industry. In the 1920s, the customer changed

profoundly as he got rich.

The new customerwanted more choices colour, style and financing as wellas he was willing to spend beyond whathe had.


CUSTOMER VALUE


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Few other great businessmen couldidentify the changes in their customersvalue and reinvented their businesses with

those changes in their mind. Nicholas Hayek, head of SMH, the Swiss

watch making company, understood that agrowing set of consumers would buy

watches based on taste and emotion,rather than prestige.


CUSTOMER VALUE


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Jack Welch saw that GEs customers sawless value in the product and more value inthe services and financing.

Bill Gates of Microsoft saw wherecustomer priorities were shifting in thecomputer industry time and time again from languages to operating systems to

applications to communications to theInternet.


CUSTOMER VALUE



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Michael Dell in his book Direct from Dell hassaid: We take our customers pulse regularly

through more than 300,000 telephone,online, and face-to-face interactions every

week and we are constantly humbled by ourexperience.

He continues: Theyve taught us things that

have directly affected our success; theyve

kept us on course and prevented us from

doing things that would have been

disastrous.


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Continuous customer interaction yields

real-time insight and a glimpse into

tomorrow.

A marketer must, therefore, create

continuous dialogue particularly with

future defining customers, whose issues,

practices, and solutions today representwhat the marketplace behaviour will be

tomorrow


CUSTOMER VALUE

23609566 Customer Analysis

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Transcript of 23609566 Customer Analysis