External Analysis &

Customer Analysis Based on

Segmentation
Customer Analysis
Segmentation

Identification of customers groups that respond

differently from other groups to competitive offerings.
Thus, a successful segmentation strategy requires the
conceptualization, development, and evaluation of a
competitive offering.

Who are the biggest customers? The most profitable?

The most attractive potential customers?

Chapter 2 -
External and
PPT 2-2
Customer
Analysis

Figure 2.2
Examples of Approaches to Defining
Segments
Customer Characteristics
Geographic
Type of organization
Size of firm
Lifestyle
Gender
Age
Occupation Chapter 2 -
External and
PPT 2-3
Customer
Analysis

Figure 2.3
Examples of Approaches to Defining
Segments
Product-Related Approaches
User type
Usage
Benefits sought
Price sensitivity
Competitor
Application
Brand loyalty Chapter 2 -
External and
PPT 2-4
Customer
Analysis

Figure 2.3
 Segmentation
How should segments be defined?

Benefit Segmentation

Price Sensitivity

Loyalty

Applications

Multiple Segments versus Focus Strategy

Cost Leadership Strategy

Product/Service Differentiation Strategies

Focus Strategy

Cost and Differentiation Strategies

Chapter 2 -
External and
PPT 2-5
Customer
Analysis
 The Loyalty Matrix: Priorities

Low Moderate Loyal

Loyalty Loyalty

Medium High Highest

Customer
(Switch for
price)
Low
to Zero (High
Non-customer Medium High cost of
(Switch for attracting)
price)

Chapter 2 -
External and
PPT 2-6
Customer
Analysis

Figure 3.4
Customer Analysis

Customer Motivations

What elements of the product/service do customers value most?

What are the customers objectives? What are they really buying?

How do segments differ in their motivation priorities?

What changes are occurring in customer motivation? In customer

priorities?
Chapter 2 -
External and
PPT 2-7
Customer
Analysis

Figure 3.2
 Customer Motivation Analysis
Identify
Motivations
Group and
Structure
Motivations
Assess
Motivation
Importance
Assign Strategic
Roles to Motivations

Chapter 2 -
External and
PPT 2-8
Customer
Analysis

Figure 2.6
The Customer as Active Partner

Encourage Active Dialogue

Mobilize Customer Communities
Manage Customer Diversity
Co-creating Personalized Experiences

Chapter 2 -
External and
PPT 2-9
Customer
Analysis
Customer Analysis

Unmet Needs

Why are some customers dissatisfied? Why are some changing brands
or suppliers?

What are the severity and incidence of consumer problems?

What are the unmet needs that customers can identify? Are there
some of which consumers are unaware?

Do these unmet needs represent leverage points for competitors?

Chapter 2 -
External and
PPT 2-10
Customer
Analysis

Figure 2.2