The more products you have in the segment’s fine cut, the stronger your distribution channels, support systems, etc. If you have two or more products that meet a segment’s fine cut criteria, the sales budget for each product contributes to that segment’s accessibility. When it enters a different segment, it gets that segment’s accessibility. If your product exits a segment, it leaves the old accessibility behind. Unlike awareness, accessibility applies to the segment, not the product. Like awareness, if your sales budgets drop to zero, you lose one third of your accessibility each year. A segment’s accessibility percentage indicates the number of customers who can easily interact with your company via salespeople, customer support, delivery, etc. SalesĮach product’s sales budget contributes to segment accessibility. The 25% is added to any additional awareness you create with your promotion budget.
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The buzz creates 25% awareness at no cost. The Courier’s Segment Analysis reports (pages 5-9) publish awareness. This will maintain 100% awareness year after year. Once your product achieves 100% awareness, you can scale back the product’s promotion budget to around $1,400,000. This is because further expenditures tend to reach customers who already know about the product. Starting Awareness + Additional Awareness From Figure 4.2 = New Awarenessįigure 4.2 indicates a $1,500,000 promotion budget would add 36% to the starting awareness, for a total awareness of 69% (33 + 36 = 69).įigure 4.2 indicates a $3,000,000 budget would add just under 50% to the starting awareness, roughly 14% more than the $1,500,000 expenditure (33 + 50 = 83). This year’s promotion budget would build from a starting awareness of approximately 33%. If a product ended last year with an awareness of 50%, this year it will start with an awareness of approximately 33%. Last Year’s Awareness - (33% * Last Year’s Awareness) = Starting Awareness From one year to the next, a third (33%) of those who knew about a product forget about it. An awareness of 50% indicates half of the potential customers know it exists.
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A product’s awareness percentage reflects the number of customers who know about the product. PromotionĮach product’s promotion budget determines its level of awareness.
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See “3.2 Estimating the Customer Survey Score” for more information. Promotion and sales budgets affect product appeal.