Tuesday, November 30, 2010


There is a condom distributor, "Condomman", that sells on Amazon.com,  that buys Durex condoms in bulk from the company and then breaks bulk to sell them to customers through Amazon.  Since the condoms that he sells do not come in small boxes like 12 or 36 packs like condoms you would buy at the supermarket, he can offer them at a deep discount.  In this screen shot of Amazon, you can see that the 12 condoms MSRP is $9.99, yet Condomman sells them from $0.89.

Condomman's prices are so low because he is the only middle man in the supply chain.  Further, there is less packaging which also creates a savings.

Wednesday, November 17, 2010


Free-Sample-MM-Pretzel.pngWhen the Mars Company first release new Pretzel M&M's they were using a penetration pricing strategy to entice consumers to try their new product.  I was reading the Sunday paper this summer at my parents house, they are old fashion and still get a physical copy of the paper each day, and there was a coupon for a free package of Pretzel M&M's.  In this case, you did not even need to buy anything to get a free package of their candy.

This is a great way to encourage people to try the new product.  However, it could also lead to cannibalization because most people who decided to try the new M&M's would not also buy an old variety at the same time.

Monday, November 1, 2010

Target Marketing

I already had a post about Facebook's ads a few weeks ago, but I have more to say...

My boyfriend proposed to me last week.  Last night we changed our relationship status on Facebook from "in a relationship" to "engaged".  As soon as Gavin changed his status, an ad popped up on his side bar for engaged people in Lewiston.  This is a hot air ballon company that offers a variety of different balloon riding options, including the option to be married in a hot air ballon.

This Facebook ad is a great example of Geodemography because it targets people in a certain region, near Lewiston, who are in a particular category, engaged.  Companies can very easily use Geodemography to target very specific target markets by paying Facebook for information on its users.  This company, Adventurist Air, probably pays Facebook a certain fee for use of information on users who are engaged so they can use geocoding in an even more targeted manner.