Establishing Priority Markets and Putting Them to Work

Yesterday, I discussed how you should prioritize your markets or segments with 12 different levels, each with some combination of volume, profit and potential. You could easily consider these as A, B, C and D targets such that:

  • A includes high profit and high potential accounts or customers
  • Bs are low profit but high potential markets
  • C accounts are high profit yet low potential
  • Ds have both low profit and low potential

Assessing which target market, audience or segment belongs where can be elusive. To find where a brand fits, you’ll need to conduct an audit. There are key things you will want to learn:

  • How appropriate is your identified target?
  • What changes do you need to make to the brand or with the product?
  • How well does the brand fit among competitors prices, your own costs and consumer demand?
  • How do you allocate resources for the brand and is that allocation appropriate?

Answering these questions, though, only gets you as far as the priority list. That’s when the additional work begins:

  • What activity, directly related to the brand, can you change? This includes, but is not limited to, product modifications, manufacturing changes, line extensions and promotional adjustments (brand image or identity changes, price moves, new or modified advertising campaigns, PR efforts, etc.).
  • Do you have the capacity and resources to affect the desired changes? Do you have the people, money, time or any other resources available to implement the changes?
  • How do you expect the consumer to respond to your changes? Will an image advertising campaign meet your needs? Will your target market respond better to a grassroots campaign? Will you get more “bang for your buck” through a public relations push through the trade?
  • Who else in your vertical market (staff, intermediaries, suppliers, distributors, retailers) do you need on board to execute key parts of your plan? Are they capable of executing appropriately? If they aren’t part of the plan now, can you integrate them in some way? How else can you use your vertical market to make the plan more effective?
  • Does the capacity exist to support the changes? Can you and your suppliers, distributors and retailers handle an increase in production and sales?

You need to do this (or similar) evaluation at least annually. Getting a handle on how your brand fits in the marketplace, then prioritizing how to focus your efforts will give you more confidence and a greater probability of success in driving your brand.

add to del.icio.us :: Digg it :: Stumble It! ::

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: