Abb Electric Segmentation

Transcript

ABB Electric Segmentation EXERCISES Suppose you are the regional sales manager for ABB Electric, and you have been given a budget for a supplementary direct marketing campaign aimed at 20 percent of the companies in your region. 1. At present you have information on the Descriptor Data tab of the ABB Electric Data (Customer Choice).xls spreadsheet about the location of customers (districts 1, 2 and 3) and the sales potential of each account or prospect. Based on this information alone, to what companies would you direct the new direct marketing program? Specify the accounts and customer or prospect types. 2. Use the choice modeling approach based on the responses provided by 88 firms from your region. The data consists of the evaluation of ABB Electric and the three main competitors on eight variables: (1) Price, (2) Energy losses, (3) Maintenance requirements, (4) Warranty, (5) Availability of spare parts, (6) Ease of installation, (7) Salesperson problem solving support and (8) Perceived product quality. Perform a customer-loyalty–based segmentation for your customers and prospects. • Which variables are the key drivers of choice in this market? • Based on your analyses, on which firms would you focus your efforts? Why? 3. Assume that marketing efforts targeted at companies in the Loyal and Lost categories result in no incremental gain. On the other hand, suppose that you could retain or win half the companies in the Switchable and Competitive segments with this program. How much improvement in sales productivity can you realize by applying this choice model to the allocation of your efforts? 4. What other recommendations would you offer to ABB Electric to improve its segmentation marketing program? 5. Comment on the uses and limitations and possible extensions of this modeling approach.