Ben Wise on Branding

Watching the world through the lens of the brand

Customers Divided

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It is often mistakenly assumed that rich consumers spend more money across the board than the less affluent. It is at your peril that you believe this piece of conventional wisdom.

What is actually happening is a division within each individual consumer. Essentially, consumers are deciding what is important to them and what is not. People are then paying premium prices for those items they deem important, and cutting back in other areas.

This is why you see so many fancy cars in the parking lot outside a Wal-Mart!

Here is a quick example. Some people take great pride in their clothing and are willing to spend more money to have the latest fashion. They have identified clothing as a high priority in their life. These same people might decide that fresh food is far less important, and pick up pre-made meals from Wal-Mart. If Whole Foods (an upscale grocery store) targeted these consumers, it would be a waste of their time.

What does this mean for your business?

Segmenting your consumer base is one of the first steps in marketing campaign. There is certainly benefit to doing this on a demographic basis, but you can’t stop there. Chasing everyone within your target demographic will spread your resources too thin. Some additional research to find out the attitudes and behaviours within your target demographic will vastly improve efficiency, your bottom line, and the strength of your brand.

What do you think? How do you understand the behaviours of your consumers?

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Written by benwisebranding

June 25, 2010 at 4:40 pm

Posted in Uncategorized

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