Marketing Strategy, Multiple Segments

The geographic market and retail outlet selections for Forty Licks comprised only half of the strategy required to reach all types of Stones fans; executing the strategy successfully meant offering unique experiences to different types of fans willing and able to fork over varying amounts of cash. Therefore, Jagger and company would create three different shows, with three different musical and physical sets. Michael Cohl, the Stones’ longtime tour promoter, said, “Only the Rolling Stones would dare to come up with a concept so ambitious-three dramatically different shows in three different venues…a spectacular musical event.” This also of course, permits a variety of prices-from mass market tickets at $75 to $90 to some “Gold Circle” tickets at up to $350. This is where those economic concepts-such as maximizing the revenue under the demand curve, with multiple price points attracting multiple segments of the market-taught at the London School of Economics come in handy.

People’s perceptions of value, however, play an important role in the overall perception of the brand. Performing in a select number of small venues (at much higher ticket prices) adds to the aura of the Rolling Stones brand among those who can’t see them in intimate settings, and the rarity of such performances enhances the value to those paying top ticket prices because they are buying an experience few others will have. Similarly, Nike does sell $170 shoes to a select number of customers willing and able to pay the price. While marketing strategy contributes to the sale of the high priced shoes, Nike sells far more shoes in $70 range. From a branding standpoint, the expensive shoes give an overall perceived lift to the Nike brand and add to its aura in the marketplace.