Marketing Strategy Plan: 4 Paths Your Price Strategy Could Follow
By
Krisz Rokk
What's the goal with your price strategy? Do you want to be most
expensive or least expensive? Or do you want to take the middle of the
road and have a price in between?
Customers are looking for the best value and not always the least-expensive product.
If your audience considers the price point you have chosen significantly lower than what they expected they will wonder if the quality of your product is really OK. On the other hand if they perceive your offer as overpriced they might walk away from embracing a 'luxurious' product, deciding to stick with the old things they already have.
Pricing is a matter of perception! Customers have a price point in mind of what the perceived value is for a product or service!
The 4 paths your price strategy could follow:
1. Volume
One of the strategies you could adopt is based upon volume thus pricing your product accordingly. You'll find this strategy with products that are easily accessible and perceived as commodities. Hereby is crucial to ensure that you meet the profit margins you have defined in your business and marketing plan.
2. Uniqueness
If you have a very specific and distinct product you might charge a higher price. Prior to adopting this price strategy, make sure you carry out a thorough research of your niche and competitors.
Your customers will tolerate a higher price point if they perceive your product / service as unique and one-of-a-kind.
3. Value
This strategy has everything to do with the perceived value of a product. If your customers feel that they are getting more value out of your product than they are willing to pay more. Adding value to a range of products doesn't necessarily induce higher production costs. This could be: bonuses, enhancements, and coupons.
4. Sensitivity
When it comes to surgeries people will most likely consider aspects such as quality, level of experience of the surgeon who is going to do the intervention, credentials for the hospital and the team of doctors way more important than pricing. Customers will most likely not go for the least-expensive option thus pricing will not be a key factor in their decision-making process. A person's health and survival is valued extremely high. So we're talking here about a service that is not very sensitive.
Compared to the example above, we can look at travelling and notice that this is a more sensitive market as people are willing to either chose a value/price option or go straight for the least expensive offer.
Pricing is a game of perception. In order for you to master this game you will have to know and understand your target audience.
Yes (in the end), it all comes down to mastering the fundamentals in marketing.
Customers are looking for the best value and not always the least-expensive product.
If your audience considers the price point you have chosen significantly lower than what they expected they will wonder if the quality of your product is really OK. On the other hand if they perceive your offer as overpriced they might walk away from embracing a 'luxurious' product, deciding to stick with the old things they already have.
Pricing is a matter of perception! Customers have a price point in mind of what the perceived value is for a product or service!
The 4 paths your price strategy could follow:
1. Volume
One of the strategies you could adopt is based upon volume thus pricing your product accordingly. You'll find this strategy with products that are easily accessible and perceived as commodities. Hereby is crucial to ensure that you meet the profit margins you have defined in your business and marketing plan.
2. Uniqueness
If you have a very specific and distinct product you might charge a higher price. Prior to adopting this price strategy, make sure you carry out a thorough research of your niche and competitors.
Your customers will tolerate a higher price point if they perceive your product / service as unique and one-of-a-kind.
3. Value
This strategy has everything to do with the perceived value of a product. If your customers feel that they are getting more value out of your product than they are willing to pay more. Adding value to a range of products doesn't necessarily induce higher production costs. This could be: bonuses, enhancements, and coupons.
4. Sensitivity
When it comes to surgeries people will most likely consider aspects such as quality, level of experience of the surgeon who is going to do the intervention, credentials for the hospital and the team of doctors way more important than pricing. Customers will most likely not go for the least-expensive option thus pricing will not be a key factor in their decision-making process. A person's health and survival is valued extremely high. So we're talking here about a service that is not very sensitive.
Compared to the example above, we can look at travelling and notice that this is a more sensitive market as people are willing to either chose a value/price option or go straight for the least expensive offer.
Pricing is a game of perception. In order for you to master this game you will have to know and understand your target audience.
Yes (in the end), it all comes down to mastering the fundamentals in marketing.
And if you are interested in finding out more about how to build a
lucrative branding with long-term success, I invite you to read my
E-Book De-Tox Your Brand.
Another tip for you! Visit my blog at Strength In Business and get instant access to your *free* E-Book entitled "25 Internet Marketing Tips to Boost Your Sales".
From Krisz Rokk - Your Marketing Expert
Article Source:
http://EzineArticles.com/?expert=Krisz_Rokk
Another tip for you! Visit my blog at Strength In Business and get instant access to your *free* E-Book entitled "25 Internet Marketing Tips to Boost Your Sales".
From Krisz Rokk - Your Marketing Expert
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