Can she access this group with marketing messages or

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Can she access this group with marketing messages, or does the retirement community control access (or perhaps already provide outdoor recreational services like kayaking)? Her next criterion is responsiveness. Are the people in this segment likely to react similarly and positively to her marketing efforts? Do they want to go kayaking? Lastly, she will assess profitability--can she make a profit leading these types of tours for this audience? AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-03 Describe how firms determine whether a segment is attractive and therefore worth pursuing. Topic: Evaluate Segment Attractiveness 123. (p. 169) Abigail wants to sell a local advertising calendar. She knows there are 2000 households in her
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community, and estimates 30 percent will buy a calendar. The printing company will charge a $400 setup fee and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a $2,000 total profit? Show your calculations. Segment profitability = (Segment Size X Segment adoption percentage X Purchase frequency X Price X Profit margin percentage) - Fixed costs. We don't know the price or profit margin percentage, but (Price X Profit margin %) can be restated as (Price - Variable cost) = Price - $4. We will assume that Purchase frequency = 1 (that each household buys just one calendar). Substituting the values from the homework $2000 = (2000 X .30 X 1 X (Price - $4)) - $400 $2000 = 600 X (Price - $4) - $400 $2000 = 600 X Price - $2400 - $400 $4800 = 600 X Price Price = $8 AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-03 Describe how firms determine whether a segment is attractive and therefore worth pursuing. Topic: Evaluate Segment Attractiveness 124. (p. 169) Segment profitability asked marketers to consider segment size, segment adoption percentage, purchase behavior, profit margin percentage, and fixed costs. Select three of these five elements and explain where marketers will find solid quantifiable information to make the calculations. Students' answers will depend on the choice they make. They should be able to identify internal and external sources. Their answers should also explore the nature of the data and how reliable it might be. New products will challenge the students. AACSB: Analytic Blooms: Apply Difficulty: 3 Hard Learning Objective: 08-03 Describe how firms determine whether a segment is attractive and therefore worth pursuing. Topic: Evaluate Segment Attractiveness 125. (p. 169- 172) Ronaldo is developing an Internet auction-based business. After establishing his objectives, describing potential market segments, and evaluating the attractiveness of each segment, Ronaldo now has to choose which target market to focus his efforts on. What factors should influence his decision? His ability to pursue each target segment is a key factor. Since it is an Internet auction-based business, Ronaldo should be able to access information about past sales of similar products, number of bidders, and prices. This will help determine the attractiveness of each segment. He
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  • Fall '12
  • Chris
  • Marketing, printing company

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