House-hunting from your couch
Digital cable may be trampling the strength of TV advertising, but it has given birth to new marketing opportunities for industries that have never found commercials beneficial. Comcast has channels dedicated to shopping, exercising, and now real estate. Those who have the urge to buy a new house are not restricted by showing hours nor are they dissatisfied with black-and-white innate images. Comcast enables house hunters to look at what they want, when they want, and more importantly, without leaving the house. With the click of the remote, buyers have access to hundreds of houses that can be viewed on television. This saves them a substantial amount of time and money by only going to physically see a potential home after preliminary approval.
Walgreen’s Market Segmentation
On a high level, Walgreen’s segments the market into two main consumer groups: pharmacy and retail store. However, they are constantly looking for ways to integrate these businesses and disintegrate the differentiation of a pharmacy customer and a store customer. I have noticed their recent attempt to transform customers of one or the other into loyal, Walgreen customers by offering specific promotions that pull them across segments. One in particular is the $25 gift card offer. Patients who are willing to transfer their prescriptions to us from a competing drug store are rewarded with the gift card. Then, they can use their gift card for future Walgreen’s purchases. This is beneficial in numerous way:
1. Reach out to the pharmacy market segment of competitors to gain new customers
2. Retain the new customer for a purchase worth at least $25
3. Spend a little, spend more—customers must first spend money at the pharmacy counter to get the gift card, and then spend even more money on the subsequent purchase with the gift card. More than likely, the $25 gift card will create a profitable sale because the customer will be willing to spend an amount exceeding that of the gift card (they see it as a discount).
4. Increase the amount of time the customers are not spending money at competitors
5. Cross-segment shopping increases the amount of the sale per customer visit
Walgreens could do a better job of segmenting the market even farther, especially in the pharmacy. Since we have access to every patient’s demographic information, we could personalize advertisements that target a specific set of pharmacy customers. I have been involved with small attempts to do this at my store. We have an on-site clinic that is now administering the Shingles vaccine. To make patients aware of this service, we put stickers on their prescription bags. Since the vaccine is indicated for those over 60 years old, we only sticker the bags of patients whom we identify to be in this age group.
Personalized marketing efforts such as this could be done on a much larger scale through various mass media. Walgreen’s should take advantage of that data that is compiled from our millions of pharmacy customers nationwide that is right at our fingertips.
1. Reach out to the pharmacy market segment of competitors to gain new customers
2. Retain the new customer for a purchase worth at least $25
3. Spend a little, spend more—customers must first spend money at the pharmacy counter to get the gift card, and then spend even more money on the subsequent purchase with the gift card. More than likely, the $25 gift card will create a profitable sale because the customer will be willing to spend an amount exceeding that of the gift card (they see it as a discount).
4. Increase the amount of time the customers are not spending money at competitors
5. Cross-segment shopping increases the amount of the sale per customer visit
Walgreens could do a better job of segmenting the market even farther, especially in the pharmacy. Since we have access to every patient’s demographic information, we could personalize advertisements that target a specific set of pharmacy customers. I have been involved with small attempts to do this at my store. We have an on-site clinic that is now administering the Shingles vaccine. To make patients aware of this service, we put stickers on their prescription bags. Since the vaccine is indicated for those over 60 years old, we only sticker the bags of patients whom we identify to be in this age group.
Personalized marketing efforts such as this could be done on a much larger scale through various mass media. Walgreen’s should take advantage of that data that is compiled from our millions of pharmacy customers nationwide that is right at our fingertips.
Targeting Pittsburgh’s Markets
Pittsburgh is a market segment in itself when looking at the bigger picture. People here act a certain way and buy certain things that are different than people in other cities or countries. Then, within Pittsburgh, we can break down the market even further. Different industries and companies identify and target specific segments to sell their products then develop strategies to reach these segments.
I have come up with some strategies for marketing to different segments in Pittsburgh:
I have come up with some strategies for marketing to different segments in Pittsburgh:
| | Homosexuals | Retirees | College Students | Single Mothers | Wealthy Couples |
| | - In specific neighborhoods and social venues that are known to be gay attractions - Gay-affiliated websites and internet groups - Rainbow Alliance on college campuses | - Country Clubs - Hospitals - Pennysavers, newspaper ads - Commercials on the local news channels - Large writing, speak loudly | - On campuses, in dorms, cafeterias - School newspapers - Facebook - Bars and clubs - Offering free stuff (esp. food) | - Grocery stores - Day care centers - Coupons - Through their children/make their kids want it - Words such as FAST, EASY, QUICK, CONVENIENT, LOW COST | - At up-scale restaurants - In neighborhoods with high property value - Malls, high-end stores - Focus on the name brand/brand image and its lower-priced competitor - Words such as LUXARY, PERSONAL, STAND OUT, BETTER |
Using THEIR Thunder
The title of Frey’s article is a spinoff of a 90’s television series that had the same name. Using a phrase that has an alternate meaning strikes readers’ interest because they already have a connection with the title. The demographics of America and the famous TV show starring Al Bundy have nothing to do with each other. Frey is not stealing the title, he is taking the popularity of it to draw familiarity and give readers a reason to dig in to the contents.
Payless is also doing this with a new line called American Eagle. Shoppers automatically think of the retail clothing brand and begin to associate the lower-line, bargain shoe store with a more expensive and reputable brand image.
Payless is also doing this with a new line called American Eagle. Shoppers automatically think of the retail clothing brand and begin to associate the lower-line, bargain shoe store with a more expensive and reputable brand image.
Competitive Intelligence
"A formalized, yet continuously evolving process by which the management team assesses the evolution of its industry and the capabilities and behavior of its current and potential competitors to assist in maintaining or developing a competitive advantage" (Prescott and Gibbons 1993).
CIP tries to ensure that the organization has accurate, current information about its competitors and a plan for using that information to its advantage (McGonagle & Vella, 1990).
CI uses public sources to get information- can be legally and ethically identified and accessed
Business espionage: develops the same information by illegal means like hacking
CI itself has become a business. Many internet sites are publishing CI on companies within different industries and sell them. They also offer tools to help analyze the CI data and send updates when reports are updated. I would question the validity of these companies and their data. Who’s to say they aren’t owned and operated by a firm that is posting fraudulent information? I think CI is more valuable when a company does it for themselves so that they can establish beforehand what they are looking for and how they will get it.
CIP tries to ensure that the organization has accurate, current information about its competitors and a plan for using that information to its advantage (McGonagle & Vella, 1990).
CI uses public sources to get information- can be legally and ethically identified and accessed
Business espionage: develops the same information by illegal means like hacking
- External environmental factors affect organizational change and competitive advantage can only be assessed with respect to these factors
- Choose sources to obtain the data- restrictions often influence this decision and it is up to individuals
- The same standards held to the reliability and validity of scientific research apply to CI
- Competitors play “strategic games” to mislead CI
CI itself has become a business. Many internet sites are publishing CI on companies within different industries and sell them. They also offer tools to help analyze the CI data and send updates when reports are updated. I would question the validity of these companies and their data. Who’s to say they aren’t owned and operated by a firm that is posting fraudulent information? I think CI is more valuable when a company does it for themselves so that they can establish beforehand what they are looking for and how they will get it.
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