How to Use Product Targeting to Determine the Right Channel Mix
Budget Time
So weve made several decisions now:
1. Women age 25-35 are our primary target
2. Women age 35-50 are our secondary target
3. Men age 25-50 are our tertiary target
4. Green salads and smoothies drive profits
5. Double burgers are important for our tertiary group
Thinking back to our original budget of $20 million and approaching it from a profit basis we could see:
There are, of course, other ways to look at a budget, from dedicating 50 percent of the budget to the main target to just doing more of the same. One of the key aspects is: does it make sense? In this case, the underlying assumption is that investing in the two groups that generate the most profits AND who tend to have the two most profitable products in the menu. It does make sense.
Other articles by Marcelo:
Using Consumer Clusters To Ramp Up ROI (part 2)
Thinking Physics to increase your ROI (part 1)
Two Guys Walk Into A Bar
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?In Advertising, Persistence Wins the Day
50 Ways to Kill Your Lover ?
Brand Growth And The Randomness of It All
