MKTG 6250U: Business Marketing

September 20, 2012

Anna Sampson

Samyukta Jaishankar

AgendaKey concepts- Everything you

wanted to know about Chapter 2 and tomato sauce

Industry Application What’s up with Brooks?

Market Driven Organizations“Those that are able to sense trends and changes in the markets ahead of their competitors…can anticipate more accurately the responses to actions designed to retain and attract customers and improve channeling relations, thereby thwarting competitors.”

Market Sensing

Defining a market

Monitoring Competitio

n

Assessing Customer

Value

Gaining Customer Feedback

Segmentation

“The process of partitioning a market into groupings of firms that have relatively similar requirements and preferences for market offerings within each grouping and relatively different requirements and preferences between groupings.”

Defining a market

Monitoring Competitio

n

Assessing Customer

Value

Gaining Customer Feedback

“Different kinds of mustard satisfy different kinds of people”

http://www.ted.com/talks/lang/en/malcolm_gladwell_on_spaghetti_sauce.html

Conventional Bases of Segmentation

Industries Customer Size Customer BehaviourGeography

Progressive Bases of Segmentation

ApplicationCustomer CapabilitiesCustomer Business PrioritiesUsageCustomer Profitability

Criteria

MeasurableAccessibleActionableProfitable

Market Segments of InterestObtain Estimates of Each market

segment’s size and growth.◦Market Potential

Build-up method Chain ratio method Index method:

◦Total Market Demand:• Define the market• Divide total industry demand into its main

components• Forecast drivers of demand and associated

changes• Sensitivity analysis

Market Segments of InterestAssessing sales and profit potential:◦Sales Potential:

Sales force composite Regression % of each business’s contribution to

sales 

◦Profit potential: Sales Potential + Additional Assumptions Historical Data (Contribution Margin)

For Example: Zimmer Industries: Hospitals? LTC?Customer Size: Focus on LHIN? Customer Behaviour: Repeat

customers?Geography: Forget it- let’s go to

the US

Zimmer cont.Application: How do hospitals use

Zimmers? Rehabilitation, LTC…Customer Capabilities: Repairs? Business priorities: Zimmer 2.0Usage situations: One off?Contribution to profitability: LTC

chain?

If you were going to market a new product or service, which group would you target and why?

Use of Health Care Innovations

http://www.deloitte.com/dtt/cda/doc/content/us_chs_ConsumerSurveyExecutiveSummary_200208.pdf

http://www.deloitte.com/dtt/cda/doc/content/us_chs_ConsumerSurveyExecutiveSummary_200208.pdf

Profile of the Six Health Care Consumer Segments

What’s up with Brooks?Main pointsHow can what he is saying relate

to B2B?Other applications