Step by Step toward a Better Market Strategy

March 1, 2004

1 Min Read
Step by Step toward a Better Market Strategy

Originally Published MX March/April 2004

TOPSPIN

The following phased approach to defining and serving different market groups proved a cost-effective road to success for Bracco Diagnostics Inc.

  1. Determine the account universe. Create a database of complete demographic, market, and historical sales data.

  2. Segment the potential customer market. Create simple, meaningful segments of one or more dimensions.

  3. Calculate each segment's value and cost to serve. It is neither necessary nor cost-effective to pursue all customers actively.

  4. Deliver variously tailored value propositions to customers in each targeted segment. Determining the most appropriate marketing channel and mix of resources to serve the specific needs of each segment may result in very different service levels and types of services.

    • Allocate high-impact, high-cost resources, such as sales personnel, to high-value customers.

    • Create more cost-effective strategies, such as telechannels or direct mail, to serve other segments.

    • Consider allowing customers to opt in at service levels of their own choosing.

  5. Trim the organization's cost structure if possible and appropriate.

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