1. Kwangmi Kim Selecting Target Audiences Defensive Marketing Strategy vs. Offensive Strategy Defensive: to protect the status/area that a brands has already built up. –>Spend $ wherever current sales are highest. Offensive: to penetrate the area that your brand has high potential, not necessarily highest sales. One is not necessarily better than the other. Indexes will help marketers see areas of strength and weakness.

2. Kwangmi Kim MRI Index Numbers It compares a product’s usage within a demographic group relative to usage within the total population. Good to discover whether a particular demographic groups is more or less likely to consume a product/brand compared to the total population. Index above 100 and below 100?

3. Kwangmi Kim Index=% demo in target group/% demo in base population x100 Index for age 18-24 is 96 Age 18-24 Physical Fitness Exercisers: 25.3/26.4 x 100= 95.8 Age 45-54 Physical Fitness Exercisers: 30.4/26.4 x100= 115.1 ** If you were to grab a handful of 45-54 year olds, you would be 15% (index 115) more likely than average to find a regular physical fitness exercisers.

4. Kwangmi Kim Using indexes: several rules and tips Highlight groups with index numbers over 100. Never trust an index number until you examine the projected number (the “000” column) for all demographic groups. Whenever the spread between index numbers in a grouping is not significant (10 or less), combine or collapse the groups into a single target audience --  Also consider the size of each group (the projection ‘000’) as the best way to pick the winner. Do not ignore Index numbers somewhat below 100 if the projections are promising.

5. Kwangmi Kim Adults who exercise regularly at least 2 times a week. 1. Based on index numbers, which age group has greater potential? 2. Which is the “next best” demographic group that makes sense to combine with the demo you selected?

6. Kwangmi Kim 3. Total projected number of people who would be in this new combined target audience? 4. Is it better to include a third demo group? Why? Or Why not? -  Which one?

7. Kwangmi Kim Segmentation by income: Which group would be good to select based on index numbers? Any thoughts on this criteria?