I want to share with you the marketer’s new playbook I’ve discovered in McKinsey Review.
View on the Web: http://www.mckinseyquarterly.com/newsletters/chartfocus/2010_01.htm
In previous recessions, many marketers doubled down on large, historically profitable customers, geographies, and market segments-an approach that may now be ineffective because economic woes are affecting consumers and markets in unexpected and very specific ways.
Marketers should therefore toss out their historical expectations and look for emerging pockets of profitability.
One beverage company, for example, conducted surveys that identified staggering differences in the potential gains from customers in markets and micromarkets.
The respondents’ price sensitivity varied by up to a factor of 13 across regions, of 5 across cities within them, and of 3 across zip codes in cities. This level of detail helps companies to maximize their returns by focusing on specific areas that are less sensitive to prices while also driving sales volumes elsewhere by offering discounts or preferential pricing.