Prioritizing Your Marketing Efforts

While doing some de-cluttering, going through old files, I came across a paper I wrote during my MBA years. The research focused on developing a model for determining the net present value of brand equity. One key piece included a table guiding the user on how to prioritize the markets or segments you’re targeting.

Basing your evaluation on volume, profit and potential, the table, in order shows:

1 High Volume, High Profit, High Potential
2 Medium Volume, High Profit, High Potential
3 Low Volume, High Profit, High Potential
4 High Volume, Low Profit, High Potential
5 Medium Volume, Low Profit, High Potential
6 Low Volume, Low Profit, High Potential
7 High Volume, High Profit, Low Potential
8 Medium Volume, High Profit, Low Potential
9 Low Volume, High Profit, Low Potential
10 High Volume, Low Profit, Low Potential
11 Medium Volume, Low Profit, Low Potential
12 Low Volume, Low Profit, Low Potential

Purposely, only volume is assessed in terms of low, medium and high.

As you would guess, your highest priority must be in those markets or customer segments that have both the highest profits and highest potential. Next, you’ll allocate resources to high potential areas with lower profits. The third group includes high profit and low potential segments. Finally, if you must, toss a bone at low profit and low potential groups.

If you’re not focusing your efforts in this way, you’re most likely wasting resources.

Now, you may be wondering where you might find the right tool to determine where a particular market or segment belongs on this list. That’s coming tomorrow.

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