An organization must develop a marketing strategy and plan for understanding the customer behavior. A customer analysis is essential in the market.
The customer analysis should address
- Who are the current customers?
- Why do they buy?
- Why do they make purchasing decisions?
- Where do they purchase the product or services and what channel of
distribution are used? - When do they buy?
The object of these questions is to develop a complete picture of the customer behavior in the product category or market.
By analyzing competitors customers help you understand why they are buying competitors product instead of yours and helps with brand switching and weaknesses in your product or service.
Also analyzing people who have never purchased your product helps you to expand the market and get sales.
Who are your customers?
A key principle in marketing is market segmentation and understanding the customer. Market segmentation breaks markets into segments that have different buying habits. By grouping customers this way customers are treated differently through their buying power and you target them with products tailored to their needs. Less money is spent on customers with low buying power.
