Promotion Pricing

Posted by Chris Kauza on May 25, 2009 under Marketing Monday | 3 Comments to Read

Discrimination can be a good thing, when it comes to focusing on a particular market segment or in an effort to produce a particular result.

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A children’s clothing store owner in the Eastern United States found that out when she decided to offer a discount to grandparents who came in to shop in her store on Wednesdays.  The result?  She increased store traffic and sales by 20% over the other weekday revenues, and her overall profit increased by 10%!  Why?  It turns out that the grandparents brought in their grown children to shop for kids’ clothes, as well as their friends who also have grandchildren.  Because of her focus and service on a specific segment of her market, she was able to increase sales from existing customers, and also have them grow her market by bringing in their friends and relatives.  Now she has a larger number of loyal followers, and she should continue to see her sales increase.

Action Step:

Look at your current market and see how you could further refine your segment to find an under-served group you could target.  Can you offer them a unique price, or a special performance discount?  If they buy your product, can you up-sell or offer them a service on how to use that product more effectively?  Can you run a promotion and target your competition’s customer, by offering a discounted or free review service of what they are currently getting (even if it doesn’t net you any new customers, it would offer you excellent insight into what your competition is up to)?

Find one new segment you are not currently serving or focusing on.  Commit to implementing one new idea that will serve them, or at least introduce your business to them in a new and unique way.

  • JP said,

    I was just searching for about this when I stumbled on your blog post. I’m just visiting to say that I really liked reading this post, it is really well written. Are you considering blogging more on this? It seems like there’s more depth here for later posts.

  • JP said,

    Thanks for writing, I really liked your latest post. I think you should post more frequently, you evidently have natural ability for blogging!

  • The Business Guy said,

    Thanks for your comments.

    We’ll actually be publishing more frequently, starting within the next few weeks, so feel free to review these upcoming posts for more helpful tips.

    We’ve also had many requests for more in-depth and/or customized help on different businesses, so we are developing some products and services to help with that, including a membership site that will have more in-depth information you can apply to your business, so stay tuned for that.

    In the meantime, I’d encourage you to take a look at your different weight loss segments and look at how you can use pricing and packaging to differentiate yourself from other weight loss site – can you offer a promotion on products that contain Acai berries, and bundle two weeks worth of recipes with that, in order to promote weight loss and healthier living? What about a coaching program with a user-supported forum site where you could build Community and have people share and benefit from others’ experiences using your products and services?

    Feel free to send us an email if you’d like top discuss further; in the meantime, enjoy!

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