Essay on Mkt521 Case Swan's

696 Words Jun 28th, 2012 3 Pages
Swan’s Ice Arena
Case Analyze
Swan’s Ice Arena is an ongoing hockey style arena in a city of 450,000 people. David Swan the owner wants to increase profits by reaching public skaters outside the hockey and figure skating format. Using only what information can be obtained from counting customers and reading industry newsletters Mr. Swan, has made investments in equipment and promotions. To date the returns on investment have been disappointing.
Mr. Swan has chosen a multiple target market approach putting all hockey and figure skaters in one segment and all public skaters in another. This is not too many segment and all customers fit into a segment. The problem is not enough data was gathered to determine how big each segment is, what
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By being perceived as unique in value the arena should have some insulation against competitive rivalry for the customer’s dollars. Building customer loyalty has long term affects. This moves the bargaining power for price into the hands of the arena, increasing margins. These strategies together make for a more positive market orientation and there is compelling evidence that a market orientation has a positive effect on firm performance (Hou, 2008). Having laid out a framework of new strategies it’s time to do some data mining to find the numbers for Swan’s perceived customers segments.
Data Mining
The government collects all kinds of useful information about our population. How many people live where, incomes, family sizes, ages, do they rent or own a home, and lots more demographic data that is free for the asking. Modern computer programs make possible for any company to take the masses of demographics and analysis segment populations. This has propelled data mining to the forefront of making customers relationships profitable (Ogwueleka, 2009). This will help Swan understand his customers better and find association between each segment. Customer have life cycle due in part to the time of year, so Swan can now structure his advertising and see results based on a better segment model rather than just counting customers. Data mining can also be used in customer retention applications identifying

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