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As a customer of the Amazon online marketplace and self proclaimed elastic demander of new books in all forms and genres, I find myself intrigued by the pricing segmentation strategies employed. Forcing the consumer to self-identify their willingness to pay using tactical segmentation hedges circumvents the blind online interface between the customer and firm. The consumer’s marginal benefit is indirectly discovered by the time of purchase and method of delivery. Essentially, Amazon has captured a significant array of customers at different pricing points for the same desired good, resulting in revenue outcomes more consistent with quasi-complete price segmentation.
More And You Think Your Employees Aren’t Powerful? …It Only Takes One!
Like comparing apples and oranges? No, apples and employees! The employee that isn’t trained to exhibit excellent customer service skills or takes it upon him or herself to alienate customers is like the proverbial apple that “spoils the barrel”, creating an atmosphere that spawns negativity and steals from your bottom line. It only takes one employee to send your customers running away screaming to your nearest competitor, even in the world of electronic interactions.
In the first week of June, the Business Marketing Association (BMA) held its annual B2B marketing conference in Chicago. The show over-delivered on its “Unleash” theme with a tidal wave of information about the changing nature of strategic marketing, business models, content and data strategy. Incoming BMA chairperson Al Maag, Chief Communications Officer of Avnet, had this to say about outgoing chairperson Gary Slack, “The annual conference is the jewel in our thought leadership BMA crown thanks to Gary Slack.
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Somehow “slanina” just isn’t as exciting as BACON! Products are bought because they meet a need. If you’re going to try the…
More C. Larry Pope, CEO of Smithfield Foods, Inc. has frankly told the market to expect rising pork prices to keep rising. We have seen protein producers fail in price management before, so should we believe him? This time, I believe they got the message.
More Harvard Business School Prof. Clay Christensen notes the extreme difficulty in creating successful new products. Each year approximately 30,000 new consumer products enter the marketplace and 95 percent of them fail. How then can product developers find that needle in the haystack?
More Most pricing strategists would agree that having a low price is not a competitive advantage in and of itself. In fact, thinking that low prices are always a good strategy for competition is deeply misguided. However, at times, targeting low prices can lead to a strategic focus which delivers tremendous results. For example, Ikea, Wal-Mart, and Southwest Airlines all have low prices and profitably take market share. In this article, we will examine the flaws of assuming low prices is a good competitive strategy, then demonstrate how one firm, Southwest Airlines, redefined the product through target pricing to win the market profitably.
More Spring is nigh. Krokus přijí Kdy? Co chcěš? There is a gigantic leap between a good idea and a successful, money-making business.…
More The pattern is pretty similar: the erstwhile entrepreneur usually has a wonderful idea for a money-making business. Often they have done enough research to determine that their idea is unique and they haven’t found anybody else doing precisely what they have in mind. They are excited about their concept and seek advice on how to take it to the next step and go into business for themselves. Here is some of the advice I usually hand out to these entrepreneurs.
More In one of the most turbulent and bizarre weeks on Wall Street in recent memory, two of the most important indicators of the future of American business announced their earnings and quickly took a U- turns south. The two companies are Hewlett-Packard and Wal-Mart. Read why.
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