Lessons in Small Business Marketing Decision Making


Step 4: A quick check as to which groups get what investment.

Total PopulationW 25-39As a %% of Population% of our TargetTGT IndexGelatin Index
Total Population316,128,839 31,828,214 10%100%100%
White     197,392,411     18,239,6559%62%57%       91.8         80
Hispanic       53,986,412       6,269,28512%17%20%     115.3       158
Black/AA       38,807,755       4,399,21711%12%14%     112.6       115
Asian       15,841,339       2,375,01615%5%7%     148.9         95
All Other         3,183,308         545,04117%1%2%     170.1         30

Ready For Market Planning and Decision Making

Based on this process you have a few strategic decisions:

  • Gelatin consumption is driven by two factors: price/income and novelty

o   Hispanics and Black/AA make less than White non-hispanics, so they will be better gelatin consumers

o   We will need to develop novelties for all 4 quarters to keep the product growing into a cash cow

  • 12% of all Hispanics are in our target (women 25-39), they are a large group (17% of the population and 20% of the women in our target), so they get an investment budget.
  • 11% of all Black/AA are also in our target, they are a large group (12% of the population) but are not as large as Hispanics (at 14% of our target), so they will get a budget, but it will not be an “investment” budget, but probably a maintenance-level budget.
  • Finally, white non-Hispanics, while indexing low on all counts, still will represent 46% of our consumption, so they get a “large/maintenance” budget.

Marketing Decisions Based on What the Data Suggests

Expected Sales$   260,000,000 CreativeMedia
% to Advertising$     26,000,000 10%20%80%
$     5,200,000$       20,800,000
% of ConsumptionIndexBudget  
White Non-Hispanic46%         8035%$     1,820,000$         7,280,000
Hispanics31%       15847%$     2,444,000$         9,776,000
Black/AA16%       11518%$         936,000$         3,744,000
Asian7%         95           –$               –$                 –
All Others1%         30           –$               –$                 –
100%100%$ 5,200,000 $ 20,800,000 

I have purposely avoided the issue of “acculturated” vs “non-acculturated” Hispanics to avoid more complexity, but it is easy enough to factor those, too, in the equation.

As a result of this “Total Market” approach, I would be dedicating 35% of the budget to White Non-Hispanics, 47% to Hispanics and 18% to African Americans. I would probably decide against any specific advertising against Asians (small grow, medium index) and all others (no influence on sales whatsoever).

Once you have identified and segmented your Total Market you have to develop your Total market strategy. Stay tuned for lesson 2, Developing a Total Marketing Strategy That Targets your Market Segments

Related articles:

Limited Budget Marketing Essentials

Theory of Everything

How to Sell More Customers

POE Really Is a Manageable Marketing Strategy

Marcelo Salup
Marcelo Salup
Marcelo Salup's 30+ years career in advertising covers a wide range of everything. A wide range of roles -he began his career on the creative side, won 2 Addies, changed to media, included strategic planning and consumer insight and has been an agency owner several times. A wide range of venues: Spain, Latin America, International and the U.S.  A wide range of clients that go from automotive through banking, electronics, fast food, soft drinks and much more. His professional philosophy can be summed up in four words: “Only performance is real”. Today, he runs a successful strategic planning consulting,  Website

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