Marketing – Session 4

Research Objectives Who are my best customers? Who are my best customers? How do I find more like them? How do I find more like them? Where do they live? Where do they live?

Research Objectives What is their lifestyle? What is their lifestyle? What do they read, listen to, watch? What do they read, listen to, watch? How can I reach them effectively? How can I reach them effectively?

Target Market Analysis Geographics Geographics Demographics Demographics Volume concentration Volume concentration Product usage Product usage Potential markets Potential markets

Potential Markets Several distinct customer types, or one main Several distinct customer types, or one main Define—focused profile Define—focused profile Users vs. Purchasers vs. Influences Users vs. Purchasers vs. Influences Primary target large enough? Growing? Primary target large enough? Growing? Distinct secondary targets? Distinct secondary targets?

Business Location Location Number of employees Number of employees Interests Interests Spending patterns Spending patterns SIC codes SIC codes

Health Care Specifics Influence of physicians vs consumers Influence of physicians vs consumers Influence of insurance Influence of insurance HSO image HSO image Emergent, urgent, convenience Emergent, urgent, convenience

Total population Within 10 miles Females Who want a baby Insured by our network Actual patients

Total market demand Total volume purchased Total volume purchased Defined consumer groupDefined consumer group Defined geographic areaDefined geographic area Defined time periodDefined time period Defined marketing environmentDefined marketing environment Defined marketing programDefined marketing program

Estimating market demand Define market precisely Define market precisely Secondary data Secondary data Specific (e.g. births in Weber County)Specific (e.g. births in Weber County) General (e.g. national use rate)General (e.g. national use rate) Competitors/AssociationsCompetitors/Associations Primary research Primary research Area analysisArea analysis

Estimate organization market share Share of the total market Share of the total market Share of the served market Share of the served market Share relative to leading competitor(s) Share relative to leading competitor(s)

Forecasting future demand Buyer intention surveys Buyer intention surveys Middleman estimates Middleman estimates Market tests Market tests Time series analysis Time series analysis

An example… 9,000 visits this year … wants next July’s numbers 9,000 visits this year … wants next July’s numbers Long-term trend shows 5% growth Long-term trend shows 5% growth Business recession is expected next year = 90% of expected Business recession is expected next year = 90% of expected July is a below-average month (80%) July is a below-average month (80%)

Statistical Demand Analysis Q = f(X 1, X 2,.,X n ) Q = f(X 1, X 2,.,X n ) Q = S 1 – 75 S 2 Q = S 1 – 75 S 2 S 1 = education level S 1 = education level S 2 = age of center S 2 = age of center Q = (13) – 75 (4) = 570 Q = (13) – 75 (4) = 570

Segmentation What is a market segment? What is a market segment? Criteria of a good segment Criteria of a good segment IdentifiableIdentifiable AccessibleAccessible Inclined to buyInclined to buy Able to buyAble to buy

Approaches to segmentation Concentration or convergent Concentration or convergent Multi-segment or divergent Multi-segment or divergent User-oriented User-oriented Product-usage Product-usage