Media Management - Market Prioritization

So here I am with step two – Market Prioritization

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What do you mean by market prioritization?

 Let’s start from the basics. Let’s understand what prioritization is?

According to the dictionary, to prioritise means – To determine the order for dealing with (a series of items or tasks) according to their relative importance.

Market prioritizing is nothing but prioritizing the markets on the basis of their relative importance to the brand. This means certain regions/markets are given more importance than the other.

You must want to know why this is done?

Do you remember the earlier post wherein we discussed the importance of target audiences? And market segmentation? Well precisely that’s why we have the concept of market prioritisation.

After you have assessed whom your target audience is, you can easily figure out where to find them. You now know precisely which is your market and which is not. You can also arrange the markets based which market has the highest consumers to the ones with the least.

Logic tells us that we should concentrate on the places where we are most likely to find our audience. This is where market prioritization comes into play. Market prioritization is concentrating or prioritizing those markets, which have the most amount of consumers.

This is done, as there is a fixed budget. In order to use the budget wisely, planners usually start with the markets that have the most consumers to those who have the least.  The budget is distributed from the most important to the to the least till the given amount is exhausted.

Photo Credit: Google images

There are certain parameters for market prioritization, which are: -

Sales figures: The sales figures are one of the most used factors to prioritized markets. This data is easily available and also comparable.

Market growth: Market prioritization is also done on the basis of the market growth. The market growth is compared to the growth of the previous years and then the decision is taken which market is to be given more importance over the other.

Category size: the growth of a product can be determined if, there is a small share in a large market. While, a large share in a small market indicated and shows signs of saturation. This parameter helps to decide which markets should be prioritized while which shouldn’t.

Brand and category development:  In this case, what is done is that, the per capita consumption is taken into account along with the sales figures. The idea is that, there may be two markets with similar sales figures, however the market, which has a higher per capita income, is preferred as, that will result in higher returns. 

Markets that are media isolatable: there may be two markets with more or less similar sales figures. So how do we decide which market should be prioritized? In this case what is done is that the cost of reaching the audience is considered and calculated. The transportation cost of sending the products to the market is measured. 

Prioritizing markets are a very smart way of concentrating on those markets, which are beneficial to the markets. It helps to plan and place the markets to be concentrated on in a systematic manner.

Next time around I we shall discuss the third step. So long farewell :)