Final Customer Buying from the Product Producer
Acquire Steps: Acquire steps include all activities the customer completes preceding the use or the consumption of the product. These steps include the customer's efforts needed for evaluation and acquisition of the product.
B. Needs to avoid sources of anxiety
2. Limitations set by time: Segment customers according to the causes of the limitations set by time.
Delays related to location: Identify characteristics related to the location of purchase or use that separate one group of customers from others
Distance from the company, from the product, from competition or from some other preferred location
Distance from competition:
Because they are in areas with low population density
|United Tote makes a portable totalisator–a computerized data-processing system that brought state-of-the-art wagering to small- to medium-size horse tracks, dog tracks, and jai alai frontons in North America.
|Great Plains won't be a discounter despite just starting up; it plans to match the fares of the majors. It figures it can fly the Embraer jets less than half full and still break even. And by offering direct service, particularly to Washington and New York City, it won't fly into the hubs of its rivals. Great Plains Airlines originally planned to fly passengers nonstop between Oklahoma and 12 major U.S. cities (major carriers didn't offer these flights).
|United has 1,000 flights in and out of Chicago every day. Southwest built it's hub in Midway and it's New York hub on Islip on Long Island and continues its push into small cities.
|Sacramento is a major destination for charter outfits because it's not well served by commercial carriers.
|The CEO of Voicestream's strategy is to "go where they ain't." He has turned local monopolies into a profitable business. He sells phone services not just to farmers–four of the six cellular carriers make calls in Western's area.
|U.S. Cellular Corp. is a provider of satellite-based wireless communications for rural areas. It targets a 100,000 square mile patch in the Midwest that has a market of 9 million people. The company has 2.5 million customers.
|U.S. Cellular provides service to mid-sized cities like Tulsa, OK, Tallahassee, FL, and Rockford, Ill.
|Traditional phones reached market saturation a long time ago. CenturyTel's niche in the industry avoids this as it focuses only on rural and smaller city customers. This helps CenturyTel avoid competition, as did its sale of its wireless business in 2002.
|Most large, regional Bells don't want to expand into smaller cities in the U.S. They'd rather focus on populated markets. That is the reason why Verizon Communications sold its local operations in Alabama and Missouri for $2.2 billion to CenturyTel.
|By coordinating local and national sales across multiple contiguous markets, Jacor can more effectively and efficiently serve the smaller market.
|By developing "hub and spoke" regional clusters, Jacor has distinguished itself from other major consolidators by being the first to begin branching out into smaller markets surrounding the larger markets in which it has already consolidated.
|There is a nationwide glut of generating capacity in U.S. AES builds medium-size plants in small pockets.
|Waste Connections collects less trash than bigger competitors, works at greater distances between customers, and works mostly in lower-priced markets. Waste Connections focuses on markets with populations below 100,000 and has operations in Sioux Falls S.D., Idaho Falls, Idaho, and Wichita Kan. The company has stayed west of the Mississippi and has had very little pressure in these
|Starbucks will begin hitting the smaller towns and second-tier cities in America. The company feels that it has not reached 50% of capacity in the American market with stores in all 50 states.
|Hotel companies are using innovation and redesign to enter into suburban or secondary markets. Sheraton and Westin, high-end hotels, are featuring new, smaller building designs able to compete in markets that traditionally could not have supported a standard high-end hotel.
|Usually, by the time National Healthcare purchases a facility, it has such a poor reputation that as much as 80% of its potential patients go out of town for treatment.
|The main strategy of LifePoint is to renovate the hospitals that it acquires (it currently has 21 of them, mostly in the rural Southeast). 20 of the hospitals are the only one in town.
|NovaMed operates corrective laser surgery centers in 6 different markets. Instead of targeting mega-markets like New York and Los Angeles, the firm goes for midsize markets like Kansas City, Richmond, and Chattanooga.
<<Return to Acquire Steps