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Selecting Target Markets

An Example of a Market Segmentation and Targeting Program Assisted with AHP/Expert Choice

Read the “Meeting A Basic and Essential Need for Home Health Care” scenario on . 255 of your Kotler et al case.

Let us assume that Right At Home Health Care has been a big success in its start-up in Colorado Springs, Colorado, so much so that Mark Terry is investigating other target markets in the state of Colorado to open up a second RAH Senior Care location.

In reflecting on the targeting decision, Mark sheds some light on what he is looking for in a new location. First, we want to stay in Colorado for the present. We have excellent contacts in the Colorado’s state government agencies serving seniors and we just feel more comfortable here. Second, we think that we ar4e best served by leaving the Denver metro area to our competitors. Right or wrong, we believe that our chances of repeating our success in Colorado Springs are better in a medium-sized community that has a heavy population of seniors who are fairly well-off, who reside in their own or rented home, condo or apartment and where there is not an abundance of direct competitors. These individuals have a strong desire and capability of maintaining independence with assistance from a caregiver on an hourly or live-in basis. Also, we have benefitted from our contacts with a University with programs in geriatrics, gerontology, seniors services, and nursing programs. We draw interns and employees from our University connection. So we are looking to replicate our contacts similar to the network we have built with Colorado State University in Colorado Springs.

Here are some of the cities we are thinking about:

Aurora

Boulder

Englewood

Ft. Collins

Grand Junction

Lakewood

Pueblo

How should Mark Terry proceed? He has asked you to assist with his community targeting decision.

Recommended Steps for Right At Home Senior Care

1. Step One -- Determine the segmentation...