Value-pricing Strategy: "We're not The Cheapest but..."

Written by Henriette Martel-Lawson


In this highly competitive online marketplace, it can be difficult to persuade customers to buy from you when you offer a similar product to your opposition but with a higher price tag. And trying to beat competitors on price alone is a cut-throat business, very risky and not recommended. It attracts bargain hunters ready to defect to competitors for a better deal.

Using a value-pricing strategy is a better proposition because it attracts loyal customers. Why do customers buy designer-labelled clothes and luxury cars? Why are those items more expensive when they don't cost so much more to make? The answer lies inrepparttar perceived value. Value is not an inherent attribute ofrepparttar 142689 product but it commands a higher price.

Customers do not buy features and benefits, they buy VALUE.

Value is subjective. Value is a benefit but a benefit is not necessarily of value to all customers. For example, a vendor offers free installation and free updates for his software. Customer-A considers "free installation" as "value"' because he has no technical knowledge and this will save him time and effort. Customer-B ratesrepparttar 142690 free installation as "nice to have" butrepparttar 142691 drawcard or "value" isrepparttar 142692 free updates that will save him money inrepparttar 142693 long run. Customers do not assign value torepparttar 142694 same benefits.

Behind value-pricing strategies there are a few important concepts:

- Customers are value conscious rather than price conscious e.g. some customers will pay extra for prompt delivery. - Customers assign a personal value to a product or service e.g. a teenager is willing to pay a premium price for a concert performed by his idol. - The selling price is based on customers' perceived value rather than onrepparttar 142695 vendor's costs e.g. an ebook costs less to produce than a paperback but readers will pay more for it because ofrepparttar 142696 value placed on format and instant delivery.

When customers evaluate competing products, they are usually comparing value. To increaserepparttar 142697 value of your products, you can either add benefits or reducerepparttar 142698 perceived risk factors rather than resorting to reducing your price.

Incestuous relationship between football and marketing

Written by Arvind Kumar


Thousands eyes were fixed. Hearts were beating hard againstrepparttar chests. Emotions was high, expectations was weighting on warrior on football field. This was a article moment for David Bekham. He has to take a direct free kick. Human wall was erected in front of football a few yards away. Opponent and helping hands were scattered around inrepparttar 142672 D-area hustling and bustling. And whistle went off.

Bekham tookrepparttar 142673 kick. It went high in air, cutting it at a very peculiar angle, 46 eyes onrepparttar 142674 field and thousands offrepparttar 142675 field were fixed onrepparttar 142676 rotating wonder. Ball takes a swirling loop and rest is history.

Some says it wasrepparttar 142677 air, some says it wasrepparttar 142678 ball who didrepparttar 142679 trick. But history has given a name to this loop, “Bend it like Bekham .” Not many loop are famous like this.

Marketing strategists and marketing need to learn a lot from football, game .What wasrepparttar 142680 price of Bekham skill. Priceless! Similarly, Marketing general deliver and perform when emotions and expectation are touching bottom. That definesrepparttar 142681 difference and worth of these super performers from mediocre. They keep their cool , eyes fixed on target regardless of tense situation around . They do unexpected which even their intense opponent do not expect it. Performers known whenrepparttar 142682 iron is red hot.

Football teaches marketerrepparttar 142683 superiority of personnel, A-team playing with 10 player against 11 player will always be one down similar, a sales force superior in number torepparttar 142684 competitor will be for better.

There would always be a fight between quality and quantity. But as marketing Guru AL Rise say that marketing general never draft their strategy based on quality of personal . That is a risky bet and Erratic performance can divestrepparttar 142685 best lay at plan.

Strategy should get success regardless of success of tactics. Similarly match of football should be won regardless of what happens inrepparttar 142686 games at all cost.

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