Which step involves identifying direct and indirect competitors from the customer's perspective?

The step that involves identifying direct and indirect competitors from the customer's perspective is competitive analysis. This process requires a marketer to examine not only the companies that offer similar products or services (direct competitors) but also those that provide alternatives that customers might consider (indirect competitors).

Understanding this competitive landscape is crucial because it allows businesses to recognize how their offerings compare against others in the market and identify unique selling points that can be leveraged in marketing strategies. By analyzing competitors through the lens of the customer, marketers can gain insights into consumer preferences, behaviors, and perceptions, which can help in positioning their own products or services more effectively.

The other options do have their specific focuses: market segmentation emphasizes dividing a market into distinct groups of buyers, SWOT analysis deals with assessing internal strengths and weaknesses alongside external opportunities and threats, and product development is focused on creating or enhancing products. However, none of these steps specifically emphasize understanding the competitive landscape from the customer's viewpoint, which is the essence of competitive analysis.