Understanding how consumers make purchasing decisions will help your company win more customers and beat the competition, says Niraj Dawar, writing for Strategy+Business. The author provides a four-step marketing strategy, and it starts with getting to know your consideration set.
Before you can start playing “win the customer”, you need to be clear about who your main rivals are. You might think your biggest competitors are the companies that vie with yours for shelf space, resources, employees and SEO rankings. But, Dawar argues, your true rivals are the handful of brands your customers consider alongside yours when deciding what to buy. Your idea of the competition and your customers’ views might be very different. It’s the latter that counts, the author advises.
You and your rival brands form what’s called “the consideration set”. The customer assesses the brands in the consideration set, checking off a number of criteria before selecting the one they will purchase.