Customer & Competitor Profiling

What is customer profiling?

Involves collecting information about the businesses' customers who are the consumers wanting to buy their product or service.

How is customer profiling done? (process)

1. Define the specific group of customers to profile in relation to the target market

2. Gather data based of a range of elements, such as; demographic, geographic, lifestyle, behaviour and buying motives

buying motives

Buying motives are an important part in customer profiling as its the reasons for a customers purchase. The initial buying motive is usually to satisfy a need or a want. Buying motives can be both rational and emotional.

Rational buying motives

The logical and practical reasons a consumer makes a purchase of a good or service. Consumers are aware of their buying motive having a need for the purchase. They focus on factors such as cost, efficiency and quality.

Emotional buying motives

The emotional feelings and personal desire to make a purchase. May have more influence on a buying decision than rational motives. They focus on factors such as comfort, satisfaction and security.

What is competitor profiling and examples?

Involves collecting information about competitors who are producing a similar good or service. A lot of information may not be available in the public Domain, especially if the business is not a public company. E.g. a Basic competitor profile, simple competitor analysis and complex competitor profile.

What is a Basic competitor profile and what information is used?

Can be developed by doing a SWOT analysis. This shows the internal strengths and weaknesses and the external opportunities and threats of a competitor using information and opinions already known about a competitor.

What is a simple competitor analysis and what information is used?

A table comparing main competitors along a range of elements using information found easily in the public domain. (Used in the competitor analysis of a marketing plan)

What is a complex competitor profile?

The profile is divided into the analysis of marketing, management, operation, human resources and financing. For each section the competitor needs to be described.