Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 ISOLATE SEGMENTS WHO RECEIVE THE LOW PRICE

Examples: We offer brief write-ups for each method describing a situation where the idea is used or implied. Use these supporting examples in order to expand your range of ideas. These examples are neither mutually exclusive nor collectively exhaustive.

We offer you both a short version and a long version of some of these segmentation concepts. Use the short version to complete your brainstorming in less time by continuing to Choice 3. Use the long version of Choice 2 for more in-depth brainstorming.

A. Product Purchased Segments

• Product System Component Segment: Choice 2 (long version)>> or Choice 3>>

• Product Cost Savings Segment: Choice 2 (long version)>> or Choice 3>>

• Volume Purchased Segment: Choice 2 (long version)>> or Choice 3>>

• Loss Leader Segment: Choice 2 (long version)>> or Choice 3>>

• Affiliated Member Segment: Choice 2 (long version)>> or Choice 3>>

• Introductory Offer Segment: Choice 2 (long version)>> or Choice 3>>

B. Margin Building Segments

• Customer Cost Saving Segment: Choice 3>>

• Company Revenue Improvement Segment: Choice 3>>

• Low Demand Period Segment: Choice 2 (long version)>> or Choice 3>>

C. Competitive Supplier Segments

• Targeted Competitor Segment: Choice 2 (long version)>> or Choice 3>>

• Occasion Segment: Choice 2 (long version)>> or Choice 3>>

• Individual Customer Segment: Choice 2 (long version)>> or Choice 3>>

• Public Relations Segment Choice 3>>

• Performance Perception Segment: Choice 2 (long version)>> or Choice 3>>

• Location Segment: Choice 3>>

• Relationship Renewal Segment: Choice 2 (long version)>> or Choice 3>>

<<Return to Choice 1

<<Directions to Reduce Price