MARKETING RULES.- Session 03. Travelling the world.

Listen to Martin and Richard. They both work for the same company and are dealing with a market share loss situation. They‘re brainstorming some possible strategies.

Martin: As you already know our financial results have lately been flat. We are losing some of our most important clients and our competition seems to be undercutting our prices on a growing scale.
Richard: Yes, it is a fact that our market share is the smallest in the last 20 years. What could we do?
Martin: What about a customer segmentation plan? We could prepare a specific plan for each segment of customers.
Richard: It sounds like a good idea. What segments are we talking about?
Martin: At least three. The first one is the innovative solution seekers. This group demands innovation and this could be a good opportunity for our new product range.
Richard: Yes, with our Research and Development department we should be able to face the challenge.
Martin: The second one is the cost-effective solution seekers. This kind of customers value the company’s advice to improve their performance.
Richard: How is that possible?
Martin: It’s very simple; they may be ready to pay more for one of our machines if that means saving time in the production chain. Remember that our new XT300 can do the job of the old machines three times faster. The negative side is that we might need to create a more specific customer support centre.
Richard: Now I understand, and which is the third one?
Martin: The price seekers who only want the lowest price. They represent 50% of the market and we might be able to develop a product to meet their needs.
Richard: It’s a great idea; by addressing these segments separately we’re likely to improve our market share.