Target Market The term target market is the intended audience for a product or service, which for J.C. Penny’s is the new “all American” segment, this would be young teens and adults with higher disposable incomes. More than likely, CEO Ron Johnson used psychographic and lifestyle analysis to help reach out to this market segment. He elected Ellen DeGeneres as the spokeswoman to appeal to the younger generation’s desire to be all inclusive and support the emerging notion of equality. One major benefit of this trendy market segment is the millennials are profitable and substantial. However, by targeting this specific group of consumers J.C.P. has made it rather difficult to appeal to the older, more conservative generation.
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J.C.P. is currently using a few different pricing strategies. CEO Ron Johnson uses everyday low pricing when he markets everything as 40% off to keep it, “fair and square.” When CEO Ron Johnson changed all items to ending in an even number instead of the classic .99, he used physiological pricing. Consumers feel more comfortable buying an exact price instead of one with change. These strategies are effective for a few reasons. Everyday low-value prices encourage consumers to purchases items right away and not risk the store running out of their size while still getting a reasonable price for the latest fashions. This strategy can help J.C.P. recapture part of the market share they had been losing to stores such as Walmart and Target Also, J.C.P. was able to reduce the number of coupons they send out for a short period of time. However, J.C.P. products are price elastic and due to this when the CEO reduced the number of coupons given out consumers went to other …show more content…
My mother was the best saleswoman our troop had. Each year I would sell over 100 boxes to my neighbors, family, parent’s coworkers and many other people. She would always say, “Sara, when you ask them to buy the cookies tell them what you are using the money for.” My troop would spend the funds we raise on trips for us. I never really understood why Mr.Peters would buy five boxes from me but not even a single one from any other girl who tried to sell to him. My mom was also very preferential on where I could go door to door. At the time, I thought it was because she didn’t like the “look” of other neighborhoods. I now realize my mother was using market segmentation to pick out which neighborhoods would be more profitable for the troop. Specifically, she would use geographic and demographic segmentation (we lived in a small town everyone knew what everyone was earning.) She also understood how to position the cookies. The consumer was no longer breaking their diet by buying these cookies, they were helping young girls learn at a museum or go rock climbing. Through these techniques, my mother showed me how to sell our
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J.C.P. is currently using a few different pricing strategies. CEO Ron Johnson uses everyday low pricing when he markets everything as 40% off to keep it, “fair and square.” When CEO Ron Johnson changed all items to ending in an even number instead of the classic .99, he used physiological pricing. Consumers feel more comfortable buying an exact price instead of one with change. These strategies are effective for a few reasons. Everyday low-value prices encourage consumers to purchases items right away and not risk the store running out of their size while still getting a reasonable price for the latest fashions. This strategy can help J.C.P. recapture part of the market share they had been losing to stores such as Walmart and Target Also, J.C.P. was able to reduce the number of coupons they send out for a short period of time. However, J.C.P. products are price elastic and due to this when the CEO reduced the number of coupons given out consumers went to other …show more content…
My mother was the best saleswoman our troop had. Each year I would sell over 100 boxes to my neighbors, family, parent’s coworkers and many other people. She would always say, “Sara, when you ask them to buy the cookies tell them what you are using the money for.” My troop would spend the funds we raise on trips for us. I never really understood why Mr.Peters would buy five boxes from me but not even a single one from any other girl who tried to sell to him. My mom was also very preferential on where I could go door to door. At the time, I thought it was because she didn’t like the “look” of other neighborhoods. I now realize my mother was using market segmentation to pick out which neighborhoods would be more profitable for the troop. Specifically, she would use geographic and demographic segmentation (we lived in a small town everyone knew what everyone was earning.) She also understood how to position the cookies. The consumer was no longer breaking their diet by buying these cookies, they were helping young girls learn at a museum or go rock climbing. Through these techniques, my mother showed me how to sell our