CONSUMER ANALYSIS AND BUSINESS STRATEGY
The American marketing association: www.marketingpower.com defines market research as: "The systematic gathering , recording, and analysis of data about problems relating to the marketing of goods and services". Consumer analysis is an important part of this marketing research. Without marketing research, it is quite impossible today to start any business. Consumer analysis is the first step of any marketing research. In this module, our objective is to develop your skills in consumer analysis. Consumer analysis allows you to identify your prospect and segment market. The objectives of this consumer analysis lesson are to give you the fundamental notions about: -Customer benefit.
By the end, consumer analysis techniques will enable you to establish your market segmentation. [pic]
The product must bring a benefit to the customer.
Customer benefit = Sales= Profit.
No customer benefit, no profit.
-Definition: A customer benefit is the value your product or your service gives to the customer. The customer benefit is not the Unique Selling Advantage (USA). The customer benefit is included in the USA, but it focuses on the point of view of the customer and not of the investor. It implies that you put yourself in the shoes of the customer. It means that the customer benefit is a more precise concept than the USA. There are two types of customer benefit: Functional and psychological benefits. 1.1-Functional benefit
A functional benefit is measured in money, time, duration, or physical measures: Examples:
-The product is cheaper than another one: The benefit is measured in money. -This new machine saves the consumer 50% of his time: The benefit can be measured in hours or minutes. -This car has a duration twice another car: The benefit is measured in years. -This chair is lighter than another one (ten kilos instead of twenty). It occupies less space (One square meter instead of two): The benefit is here calculated with physical measures. As time and space can be converted in money, a functional benefit is quite important for a business man. If your corporate sells its products to other corporates (business to business) you must emphasize the functional benefit. 1.2-Psychological benefit
A psychological benefit gives to the customer a pleasant feeling such as self esteem, feeling of power, pleasant view and so on. Examples:
-This product looks attractive and beautiful: Beauty depends on subjective choice. -This big and expensive car allows you to enjoy speed: As traffic regulations limit speed, the benefit is only a feeling of power. For starting a business, we recommend to focus on the functional benefit that does not depend on fads. It does not prevent you to add further some psychological benefits. The next drawing shows a product offering both functional and psychological benefits.
As a good or a service offers different kinds of benefits. You have to rate them from 1 (low) to 5 (very high) according to their importance for the customer. Of course a low price is rated 5 because it represents a greater benefit to the customer than a high price. In the next drawing the product offers a low price (functional benefit) and is quite attractive (psychological benefit). On the contrary, it does not save any time: It can be a fashionable gadget. [pic]
Once again, try to forget your own point of view. May be, you think that your low price is an important benefit but in asking around you, you will realize that the customer emphasizes on the time saved, thanks to your product. This analysis is important because it allows you to target your advertisement on the benefits which really matter for the customers. 1.3-High and low involvement benefits
Now, we have to examine another topic: Are these functional or psychological benefits quite important for the customer. It means that we have to distinguish low and...
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