Inermediary Purchasing from the Producer of the Product

Sell Steps: Sell steps include the activities Intermediary customers take in selling and delivering the product to their customers. These activities include their own customer recruitment and product delivery.

2.
Emotional: Segment customers according to the personal emotional needs of the segment.

B. Needs to avoid sources of anxiety

3. Ecomonic limitations: Segment customers according to the limitations set by their economic interests and concerns
Potential improvement in income of current customers
Customer segments whose revenues could increase if the supplier:

Limited competition for the segment

No. SIC Year Note
1 0 2004 In order to avoid cannibalization and competition within a brand, some companies offer just one product at a time. Harman International Inc. is known for high-end speakers. With the introduction of the JBL Creature II system, Harman cut the price by $30 on the new version and added features and discontinued the old line, ending the threat of competition. The company tries to keep products priced at least $50 apart and keep technical specifications distinctly different. Procter & Gamble employs a similar approach by keeping just one or two market leading products in each of its segments, rather than stuffing a category full of competing products.
2 1521 2002 Clayton Homes' retailing arm moves 60% of the 20,000 unit annual output. In Knoxville, the company uses names Clayton, Luv, Country Squire, Crossland and International for its retailers. That way the customers thinks they are shopping around, when in fact they are looking at five different Clayton models.
3 2076 1988 Orval Kent developed "creative and innovative marketing and promotions" to create customer pull with the channel in mind. Attitude is to help make money for their customers (the channel) so they keep buying the product.
4 2330 2001 Since Yves Saint Laurent has been cutting retailers dramatically to increase brand attractiveness, one of its segments' margin rose from 5.6% to 9% in one year.
5 2330 2001 To further strengthen the exclusivity of Yves Saint Laurent's brand, owner Gucci tries to weed out discount and imitation retailers by sending out investigators to scour stores and websites.
6 2400 1999 Traditional retailers are demanding reassurance from manufacturers that Web retailers won't be able to sell popular merchandise at fire-sale prices. In some cases, retailers are threatening to boycott manufacturers whose goods are offered online. At the same time, furniture makers fear being left behind if e-commerce turns their industry upside down.
7 2721 2005 Despite original skepticism, the newsweekly The Week, which compiles its coverage from a variety of sources, has quickly gained both readership and advertisers. Advertising pages are limited to just 30% of the book, compared with an average of 48% for all magazines. Advertisers like targeting a small, wealthy audience as it gives each ad more attention.
8 3140 2000 The shoe store closures in the past few years have made the industry more healthy. The number of large-chain, non-athletic footwear stores slid to 2,151 from 3,043 in 1996. The remaining players are having a field day in an optimal environment. Square footage at athletic chains has shrunk by 8%-plus. Moreover, the chains have worked through excess square footage and inventory during the past two years, in turn stabilizing price and cutting down on promotions. Vendors are helping by coming up with exclusive products.
9 3695 2000 Japan's Pioneer allowed Apple to be the first to sell its SuperDrive recordable DVD drives.
10 3873 2002 To dispel the idea of Swatch brand's plastic watches being cheap, Swatch is increasing exclusivity, particularly in the U.S., where its main competitors are Guess and Fossil. Increased exclusivity is going to be achieved by removing the brand from chain department stores like Bloomingdales and Dillard's and moving it to Swatch-owned boutiques. It plans to spend at least $10 million in 2002 to add 30 new Swatch stores to the existing 35 within the U.S. It operates 511 Swatch stores worldwide.
11 3911 2002 Swatch is introducing limited-edition timepieces exclusively at select individual stores.
12 5000 2003 The larger malls and middle market consumers have allowed premium specialty retailers to expand quickly. By offering a mix of name and own-brand goods made in small quantities, the retailers have contributed to the success of new and smaller new-luxury makers.
13 5182 2003 The Sidney Frank Importing Co uses extravagant campaigning strategies to increase the sales price through a high profile presentation. The company makes its new products exclusive so they are only offered at high priced bars.
14 5331 2003 Tupperware Corp. pulled its high-selling merchandise out of Target because such high sales were threatening sales at Tupperware parties, the company's largest revenue source.
15 5600 2005 Abercrombie is nearing the company's stated 400-store limit in the U.S., there is room to expand internationally, beginning in Canada and moving into Asia-Pacific and Europe.
16 5941 1999 Fogdog Sports won an exclusive contract to sell Nike Inc.'s full line of sporting goods on Fogdog's Web site. Until now, Nike had resisted joining forces with a Web retailer, preferring to confine its online sales to its own Web site. Fogdog has agreed to sell a 12 percent stake to Nike as part of the arrangement. Nike will acquire about 6.2 million shares of Fogdog stock at $1.03 a share. The exclusive agreement is for six months.
17 5945 1995 Arcades, not retailers, have the hot video games these days – realistic, 32-bit and 64-bit simulations that won't be available for home use until late 1995, at the earliest.

<<Return to Sell Steps