Your Customers

Targeting and Pricing Strategy

Who are your ideal customers?

Some people such as your average small business might answer EVERYONE.

Well in the case of an average high street business, such as a hairdresser, that might be true.

Second question, why do they use your services?

In the case of the hairdresser, they might say the obvious answer which is of course, they need a haircut.

While that answer is factually correct, a smart hairdresser will target a demographic, and be clear on the type of customer he, or she wants to attract.

Why buy a Mercedes rather than a Mazda?

Both do the same thing, plus the Mazda will probably cost you less to buy.

Well Mercedes are ‘targeting’ a certain demographic and type of customer.

Mercedes customers attach a premium on the prestige associated with the brand.

While studying Marketing at university we were introduced to the case study of the Mercedes 190.

The Mercedes 190 was a  small saloon (Sedan) car produced by the prestige German car manufacturer from the late 1980s.

The Mercedes 190 however had a perception problem in the eyes of the target market,  i.e those looking for a prestige vehicle.

It was too cheap!

The price initially asked by Mercedes Benz was similar to the Ford Sierra, which was a similar sized car, but with a less prestige badge.

This turned out to be a problem in the eyes of potential customers of the Mercedes 190, as they perceived it as being inferior to Mercedes normal high quality cars.

The car itself was perfectly fine. What was wrong was the price, and it put the target customers off.

Mercedes therefore relaunced the 190 model with a few modifications, at a higher price. This strategy worked, and sales picked up.

The point I am trying to make here is that brand perception is important.

Do you have a brand, and if so, who are your target customer?

Segmentation using Google Tools

Google provides the online website marketer with a number of free to use tools, and services.

One of these is Google Analytics, which allows the online marketer to analyse the characteristics and profiles of web visitors.

Using Google Analytics you are able to analyse visitors in terms including location, web browser, age, interests etc.

Another very important feature is being able to analyse web page performance.

Craig Miles: Marketing & Tech at Yesway Digital.
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