There are many different types of business terminology, and there are terms that set out the path a company needs to take to achieve business results. For example, KPI and KDI are used to determine indicators, and KBF and KBI are used to set determining factors.
These terms are mainly used by business people and managers, and are important in
marketing
. By the way, many people reading this article are probably concerned about price when purchasing products.
Basically, when purchasing a product, price and quality are often considered important factors, so sellers must determine what consumers want and what is most important. In other words, marketing needs to focus on consumers’ purchasing decision factors.
When determining consumers’ purchasing decision factors, it is necessary to use KBF (Key Purchasing Determining Factors) in analysis, and companies with growing sales set KBF. There are also critical success factors such as KSF that are set along with KBF.
In order to increase a company’s sales, setting both KBF and KSF will help improve business performance. In this article, we will explain the overview of KBF and the differences from KSF. We will also explain the key points for using KBF and specific examples, so use this article as a reference to understand how to set purchasing decision factors.
What is KBF (Key Purchase Decision Factors)?
First of all, KBF is an acronym for Key Buying Factor. Refers to the deciding factors and criteria that consumers use when purchasing services or products.
By understanding KBF, companies can carry out efficient marketing and sales activities. Also, by understanding the KBF of your own services, you have the advantage of easily establishing your own position in the industry.
KBF can be said to be an essential factor for companies to understand their position in the industry. By analyzing the reasons why a service or product sells well in the market, you can clarify your company’s strengths.
Therefore, by using KBF, you will be able to differentiate yourself from other companies in the same industry.
KBF (key purchasing decision factors) and other differences
So far, we have explained the overview of KBF and its characteristics. By the way, many of you reading this article may understand the characteristics of KBF, but may not understand the differences between KBF and others.
So, from here on, I will explain in detail the differences between KBF and other features. First, I will explain the difference between KBF and KSF, and the difference between KBF and KBI. Let’s look at each in turn.
Difference with KSF
First of all, KSF is an acronym for Key Success Factor, which is called “Key Success Factor” in Japanese. Basically, KBF and KSF are often set as a set, and are an essential element in marketing.
KSF refers to the key factors for business success, and it should be understood that KBF is different in scale. KBF refers to the factors that determine a consumer’s decision to purchase a service or product, while KSF refers to the factors that make the overall business successful.
In other words, by analyzing KBF, you will be able to understand KSF, so it is a good idea to be able to set both. However, depending on the size of the company and the nature of its services, critical purchasing decision factors and critical success factors may not be related.
If you are running a store on an internet site, there will be no need to go out of your way to analyze the factors since each consumer has different needs.
Difference with KBI
KBI is an abbreviation for Key Behavior Indicator. KBI refers to the actions taken to achieve
a KPI (Key Performance Indicator)
. Also, KPI is an abbreviation for Key Performance Indicator and refers to the process for achieving goals.
In other words, it is important to set a goal, visualize what you need to do to achieve it, and then move towards your goal. Although KBF is a consumer purchasing decision factor, KBI has a completely different meaning because it is an important behavioral indicator for your company and yourself.
By setting KBIs, you will be able to more easily achieve KPIs and KGIs, and you will be able to clearly move towards your goals. For example, “participate in a bodybuilding competition” is a KGI, “focus on increasing muscle strength” is a KPI, and “perform 3 sets of dumbbell or bench press 10 times a day” is a KBI. In this way, it will be easier to understand if you clarify how you will achieve your goals and quantify them.
Specific examples of KBF (Key Purchase Factors)
Examples of KBF include the price and performance of a product or service. It also includes things like buyer reviews and product quality. By using
frameworks
such as
3C analysis
and
4P analysis
, which will be described later, it becomes easier to find buyer
reviews
and product quality.
Timing of determining KBF (Key Purchasing Determining Factors)
The timing for determining KBF is set according to the STP (Segmentation, Targeting and Positioning) process.
- Research
-
STP (
Segmentation
Targeting
Positioning
) -
MM (
marketing mix
) - Implementation
- Control
To develop a marketing strategy, you first need to do research. After segmentation and target selection, we determine the customer’s KBF and position ourselves to confirm our competitive advantage.
Next,
the marketing
mix creates a relationship between the company and the customer, services implementation, and management processes.
Key points for utilizing KBF (Key Purchasing Decision Factors)
So far, we have explained the timing of determining KBF. So, what are the points of actually using KBF? Here, we will explain in detail the key points of using KBF. In conclusion, the main points are as follows.
- Check your company’s positioning
- Check your competitive advantage
Let’s look at each point in turn.
Check your company’s positioning
First, in order to utilize KBF, let’s check the positioning of your company’s services. By checking your company’s positioning, you can analyze whether there is a gap between your company’s services and customer
needs
.
Additionally, a positioning map is used to confirm positioning.
A positioning map
is a graph that compares your company’s products with those of other companies. By using a positioning map, you can compare your business with competitors and plan your marketing strategy.
Confirmation of competitive advantage
Next, determine your competitive advantage over your competitors. By using KBF, you can measure your company’s competitive advantage and visualize how you differentiate yourself from your competitors. This allows you to analyze your competitors’ customer characteristics and approach those prospects more efficiently.
Effective framework for KBF (Key Buying Factor)
Here, we will introduce a framework that is effective for KBF. In conclusion, this framework is as follows.
- 3C analysis
- 4P analysis
We will explain each one step by step.
3C analysis
3C analysis is a method of analysis from the following three perspectives.
- Customer: market, customer
- Competitor: Competitor
- Company：In-house
Among the 3C analyses, the analysis performed using KBF is the “Customer” analysis. In other words, we analyze market research and consumer preferences. Once the Customer analysis is complete, we will conduct a Competitor analysis. Analyze your competitors to understand your weaknesses and strengths.
Finally, perform Company analysis. Analyze the company’s sales and profitability to clarify KSF and KBF.
4P analysis
When conducting market research, we perform 4P analysis. 4P analysis is divided into four parts: Rank, Realistic, Reach, and Response. The 4P analysis is explained below.
- Rank: Priority
- Realistic: Effective market size
- Reach: Reachability
- Response: Judgment possibility
Follow this order for
targeting
.
Understanding KBF is important for business success
In order to succeed in business, it is important to make good use of KBF. By making good use of KBF, you can analyze your competitors, differentiate yourself, and pave the way to business success. Also, by understanding KBF, you can clarify the positioning of your company’s services and utilize it in your marketing strategy.
summary
In this article, we explained the overview of KBF and how to set it up.
KBF (Key Buying Factor) refers to the factors that customers consider important when deciding to purchase a product. By conducting KBF, you can analyze customer needs and competitors, making it easier for your company to survive in the market. In other words, it is no exaggeration to say that where you set KBF will determine the success or failure of your business.
Also, by performing 3C analysis and 4P analysis, you will be able to find KBF and KSF and understand your company’s position in the market. From a marketing perspective, it is necessary to fully understand KBF to appeal to customers, and in advertising, KBF has a great influence on keywords. In particular, since KBF is involved in determining media monetization points and themes, it is important to consider the final destination before marketing.