2. Session Outline
• Why Targeted Marketing?
• Determining Your Targeting Markets
– For whom do you add the most value?
– Which clients are most profitable?
– Which markets fit your ideal profile?
• Perception Is 50% of Reality
– Objective/Quantitative Analysis
– Group Exercise
• Questions
4. Determining Your Most
Profitable Target Markets
• For whom do you add the most value?
– What differentiates your product/service?
– What do you do well? (hint: from client’s
perspective not yours)
– Can you quantify your strengths and
differentiators? (hint: “quality product” is not
specific enough!)
5. Determining Your Target
Markets
• Which clients are most profitable?
– The obvious: margins
– Don’t let % revenue mislead you
– Account for hidden costs (customer service,
sales time, sales cycle, credit, late payment)
– Prefer most profitable product mix
6. Determining Your Target
Markets
• Which markets fit your ideal profile?
– Who stands to benefit most from your
differentiators?
– The more data you have, the easier it will be
to see which markets meet your profile
8. Group Exercise
• Choose a strength (examples below)
– High on time delivery rate
– Low % returns
– Low client turnover
• Or a profitability factor (examples below)
– Low # customer service calls
– High profitability margin
9. Group Exercise
• Weight your strength/profitability factor
– Can use 1 – 5 ranking
– Or % (where all factors add to 100%)
• Assign rating categories
– Set ranges for 5 ratings (1-5 or 0-4)
– Must be objective ranges
– Use examples where possible
10. Group Exercise
• Fill in your matrix – see example
WF Factor 1 2 3 4 5
5 Profit Margin % <5 6 – 10 11-15 16-20 >20
2 % of Revenue <1 1–3 4 – 10 10 – 15 >15
3 OTD Importance 1 2 3 4 5 or 4 & listed
as goal
Example: Market Segment A
WF Factor 1 2 3 4 5 Score
5 Profit Margin % X 20
2 % of Revenue x 4
3 OTD Import. X 15
(5)(4) + (2)(2) + (3)(5) = 39