Posted On: 09/28/2015 7:39:44 AM
Post# of 75043
Re: Crawford 04 #9968
When you have a niche product and are looking to target and grow within a specific demographic, all marketing must be targeted. Yes, the shotgun approach will bring in customers, but when you look back at it strictly from a profit and loss standpoint, you can easily spend $1 to make 75 cents.
This product, and this segment for that matter, have "fixed" cost that cannot be escaped: 1) the product itself and 2) distribution. As sales increase, cost go down on a per unit basis. However, on the front end, adding cost for advertising and marketing, only takes that exact amount away from the bottom line. That is why professionals are needed. They can and do find ways to identify the target demographic and inundate that demographic with overlapping marketing. Through channels like YouTube and snapchat, they can create trends that bounce around in the 18-25 demographic, and never reach a 48 year old like me. I trust that is what is happening in markets where the product is readily available.
This product, and this segment for that matter, have "fixed" cost that cannot be escaped: 1) the product itself and 2) distribution. As sales increase, cost go down on a per unit basis. However, on the front end, adding cost for advertising and marketing, only takes that exact amount away from the bottom line. That is why professionals are needed. They can and do find ways to identify the target demographic and inundate that demographic with overlapping marketing. Through channels like YouTube and snapchat, they can create trends that bounce around in the 18-25 demographic, and never reach a 48 year old like me. I trust that is what is happening in markets where the product is readily available.
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