target the optimal market and ideally a less price sensitive market Competing on price has long been a characteristic of commodity marketing and is now becoming increasingly common for brands. Interestingly, most businesses would rather not compete on price and research suggests that it is often unnecessary. Jeff Bezos, CEO of Amazon, suggests that the […]

target the optimal market and ideally a less price sensitive market Competing on price has long been a characteristic of commodity marketing and is now becoming increasingly common for brands. Interestingly, most businesses would rather not compete on price and research suggests that it is often unnecessary. Jeff Bezos, CEO of Amazon, suggests that the best way to avoid focusing on price is to understand the customer and to use that understanding to drive brand loyalty.This is the third of 5 thoughts discussing strategies that might be implemented to avoid competing on price. It has often been said, and research suggests that it is true,  that many businesses derive 80% of their income from 20% of their customers. A 2018 study found that 15% of loyal customers accounted for up to 70% of business income in organisations sampled. Time and again, research has shown that loyal customers spend more often,…