High/Low Marketing High-Low Marketing Involves

High/Low Marketing

High-low marketing involves offering two products, one at the low end and one at the high end. There is no compromise, or middle-ground offering. High-low marketing is appropriate when the target market is likely to make such a choice. The market would be segregated into those who seek a low-cost product and those who seek a high-quality product. If both of these markets are served simultaneously, and there is a path created from the low-end to the high-end offering, then high-low marketing would be ideal.

It is tempting to view high-low marketing as appropriate for K-Mart in light of their acquisition by Sears. The two stores serve different segments and it is natural to assume an opportunity to channel customers between the two segments.

However, two aspects make a high-low strategy difficult in this case. The first is that while K-Mart represents the 'low'. Sears is not a true 'high', but rather more of a 'compromise' choice, with a product range the lies in the middle ground between the high and low ends. It would be difficult to reposition Sears as a high. To have K-Mart adopt a high while simultaneously retaining the low would create logistical challenges due to the limits of physical space in their stores. Further, it would send a mixed message to consumers, who are accustomed to a singularly focused K-Mart.