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The 6W Model of Customer Analysis

 Who are the customers?
Psychograph o Those with the purchasing power?
y vs. o Those who can influence purchases? Kids, family,
parents, etc?
o Age group? Where do they live?
 What do the customers do with the product?
o How do they consume the product? Give away?
Keep?
o How often do they buy?
 Where do they buy the product?
o Channels of distribution
What are the
 Proximal/distant? implications here?
o Internet
 Safety issues
o Direct marketing
 [What might be the issues here?]
 When do they buy the product?
Can the purpose of buying
o Seasonally?
determine when to buy? AND
o Situational? WHAT MIGHT THE
 Why do they buy?
o Need satisfaction?
o Presence of alternatives?
o Power of uncertainty of needs / changing needs
 And why don’t they buy?

An understanding of the above (6W) helps to reveal:

 Customer value
 Customer needs
 Customer segments
 The attractiveness of the identified segments [segment size &
growth potentials, attractiveness & potential profitability,
resources & skills of the organisation, compatibility with the
org’s objectives, cost of reaching the market]
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What does value stand for?

…would mean different things to different people. However

generally defined as:

Perceived Benefits – Cost

Delineating Benefits & Costs [Students to come up with examples]

Benefits Costs
Functional Monetary
Emotional Time & Energy
Image Psychic Expenditure
Social
Service
Experiential

Steps in customer segmentation research [students to come

up with a business idea / product / service and interrogate]

In segmenting a market, what questions might we ask?

 Are they homogeneous or heterogeneous
 Is the market accessible?
 Can the customers be identified or measured? [ in terms of
what variables]
 Is the size significant enough to warrant some marketing
effort? [ must we approach a simply market because of its
size?]

Segmentation Research
 Gather raw data from customers
o How?
 Face-face interviews
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 Focus groups Students to discuss

 Observation merits/demerits

o What do you ask? Page 76

 Interpret the raw data in terms of customer needs
 Arrange the needs hierarchically in terms of major needs and
sub needs
 Establish the relative importance of the needs
o Either let the research team decide What might be the
 Or benefits here?

o Redo the search – using new set of customers or the old

respondents
What must we check
 Evaluate the results and steps out here? What are the
benchmarks? Page 78