Wednesday, May 16, 2012
When I was reading about all of the forces that affect marketing strategies, it got me thinking about how many more forces affect the consumers! Relating to economics, each person has a different marginal willingness to pay for a certain product. For example, one person might have no issue buying a $80 pair of jeans, and someone else may think spending more than $25 on jeans would be an absolute rip off. It's interesting how much variation business have to consider when trying to promote their product. All the more reason why target markets are key. They get rid of some of that variation.
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Exactly -- you're on the right track for when you do your own targeting/segmentation project for this class!
ReplyDelete350 million people in America and if you sell 3 million pairs you think you did okay...until nobody meet has heard of them because only 1% like your product.
ReplyDeleteI totally agree the area of this that I think is the hardest is the psychology. Judging a target market by income or more statute values is to simple. Psychology is way harder. The fact is there are a bunch of millionaires believe it or not that aren't lavish spenders they live in three bedroom houses and drive Camry's.
ReplyDeleteOh, I believe it. My fiancee works for one of said millionaires. ;) You'd never guess if you looked at him or his day-to-day car though.
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