DSpace at Khazar University

In trying to assess the influences on customer needs we require to know a good
deal about the customer? A straightforward distinction can be
made between customers purchasing on behalf of businesses (Le. business customers)
and customers purchasing for their own or their family's consumption. Typically,
business customers are purchasing goods and services as inputs to a business process
(e.g. components, power, computer software, short-term finance, liability insurance). In
order to better understand the drivers of demand for business customers we have to gain
insights into their businesses, particularly their needs and how our products and services
can meet those needs. We must be able to anticipate how these needs may change in the
future, and also whether the number of potential business customers will increase or
decrease. This requires a sophisticated knowledge of the customer's industry, their
competitors, and their customers. In fact, you have to know nearly as much about your
business customer's business as you should know about your own.
In personal customer segments we have to be able to understand their needs, and
how these might change in the future. These questions are extremely difficult to answer.
To make progress with this analysis we have to comprehend the different layers of
needs, not just the more straightforward, obvious motivations that drive customers. We
must then identify what trends - social, demographic and economic - affect these needs.
This might suggest how the needs may change in the future, and whether the demand
within the particular segment is likely to increase or decrease.
Drivers of imitability
We have labeled the factors that influence the ease with which firms can imitate
the key competences required to compete in a segment the “Drivers of imitability”.
Clearly, these factors will differ from one Segment to another, but based on our
discussion in Chapter 3 they will be from the following sources:
The transparency of the process: that is, how easy it is for an outsider to
understand the business processes required to operate in the segment.
Access to critical resources and systems including resource inputs, brands,
reputation, installed base, and access to channels of distribution.
Economies of scale, scope and experience.
Technical know-how.
39