|
|
| www.1001TopWords.com |
|
|
Value-pricing Strategy: Were not The Cheapest but...
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 in the perceived value. Value is not an inherent attribute of the 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 rates the free installation as "nice to have" but the drawcard or "value" is the free updates that will save him money in the long run. Customers do not assign value to the same benefits. Behind value-pricing strategies there are a few important concepts:
When customers evaluate competing products, they are usually comparing value. To increase the value of your products, you can either add benefits or reduce the perceived risk factors rather than resorting to reducing your price. Adding benefits
Reducing perceived risks
Naturally, everyone loves value for money but does not necessarily want the cheapest option. What value do customers perceive in your product and how much are they willing to pay? Value comes at a price! Next time you consider reducing your selling price, think value. © 2005 Henriette Martel-Lawson Henriette Martel-Lawson, author of "200 Marketing Ideas for Your Website", is a website strategist who helps businesses develop or convert a stale website into an effective marketing tool. Henriette is the founder of Marketing Cues, an internet marketing resource centre providing articles, reviews, free tools and lots of tips. Receive a free ebook when you subscribe to bimonthly WEBmarketingcues newsletter at http://www.marketingcues.com
|
|
|
|
RELATED ARTICLES
Company Vehicles Have Advertising on Them; Tips on Driving in Parking Lots Try to avoid backing up whenever possible. Occasionally some one in a small car will park directly behind you at a gas station or stop sign. They will be parked so evenly that you won't see them. This is why the telephone company and most large cable companies require drivers to put a cone behind their vehicle whenever they park their vehicles. It gets the driver in the habit of checking behind the vehicle since he has to get out and pick up the cone. You might also take a peak before you get in and drive away, especially if you are backing up. One day you will be glad you did. What the Heck is Branding and Why Should I Care? There's been a lot of buzz lately about branding. But what exactly is it, and who needs to do it? Simply put, a brand is what makes your business uniquely YOU! It's the way you present your business and how the world perceives it. And, importantly, it's the way your clients remember you when it comes time to make another purchase. Branding encompasses your key marketing messages and tagline, logo, marketing materials, image, and your clients' complete experience with you from start to finish. The Secrets of Starting Business Successfully Starting Business Secrets will help you to start your own business successfully. Brand Image ? Brand Identity Guru Having a brand image is not a "have or have not" proposition. Everyone has one. The problem is that you might have more than one brand image, depending on whom you ask. You know yourself, but depending on whom you talk to, others may think you're something completely different. That's when a brand image company can help. You need to consider hiring a brand image company that identifies your most powerful brand image and then works to make it your only brand image. The phrase "brand image" gained notoriety when sales patterns began to show that feelings and visuals associated with brands were powerful motivators to purchase products. It isn't just products that consumers buy. It's their associated personalities and values. How Important it is to have a Professional Logo Design for your Business? There are a lot of things that contribute towards the success of a business. Having a good quality product doesn't necessarily assure the success of a business. To build a long term impression on your customers, it is vital that you have a proper marketing strategy and something unique about your company. Here comes in the importance for having a custom logo design. Corporate Branding ? Dont Forget Your CDs! Companies have been branding their collateral materials such as letterhead, envelopes, business cards, etc. for years. In fact, we often identify a company by its familiar logo or special color scheme. Branding works!! At the same time, many companies send customers and vendors large files, proposals and presentations on CD-Rs. Since CD-Rs have become the "new and more efficient" way of exchanging important information, it would seem that more companies would find it valuable to brand their CD-Rs also. Trademark: Do I Need One for My Business Name and Logo? Wondering if a trademark is important to you as a business owner? Let's start with the basics. A trademark is a word, phrase, symbol, or logo that distinguishes and identifies the source of goods of one company or person from another. For example, the name Kraft is trademarked, as is Nike's "swoosh" logo. Brand Components Your brand is the culmination of everything about you and your business. It is how people come to know you. It is your business name, logo design or other symbol that identifies your goods and services. It's what makes you different from everyone else in business. What are some of the components that come to make up your brand? Shattering the Branding Myths If you've been online long, you're sure to have seen many "gurus" give their ideas about branding. However, much of what you read simply isn't true. Over the years, many myths about branding have taken hold in the online world and spread like wildfire. The fact is: They are doing you more harm than good. Blonds Have More Fun! In the book, The Blond Knight of Germany, American authors Toliver and Constable detail the life of the greatest fighter pilot to ever fly, Germany's Erich Hartmann. During WWII, Hartmann recorded 352 confirmed in-flight victories. To put it into perspective, very few American fighter pilots reached 100 in-flight victories. Simply put, Erich Hartmann reached levels of greatness most fighter pilots can only dream about. Managing the Corporate Brand - a Reputation Perspective Adored, respected and coveted by customers and organisations alike, corporate brands represent one of the most fascinating phenomena of the business environment in the 21st century. Their importance is unquestionable. Brands, in their various forms, are integral to our everyday existence. This is particularly the case at the organisational level where the concept of the corporate brand now enjoys wide currency in business parlance. There is an increasing realisation that corporate brands serve as a powerful navigational tool to a variety of stakeholders for a lot of purposes, including employment, investment and, most importantly, consumer buying behaviour. Notable News - The Branding Myth How many times have you heard of seen advertising for a graphic design company that states that they do branding? John Deere and NASCAR; Excellent Use of Brand We should all recognize the marketing efforts of John Deere especially as we have spoken before with regards to their TOYS. They have a complete line of nearly every tractor or agricultural attachment they make available in small, micro size. Corporate Branding and Professional Logo Design Any business with the minimum interest to be successful should concentrate on developing their corporate image and when I say "any business", I mean it, absolutely any business-even if it's a mom-n-pop shop. "Corporate image" might be a big word for such small ventures, however, what I meant by that is how the business wants themselves to be perceived by their customers. Irrespective of the size of the business it is very important to determine how do you come across to your potential customers? How do you compare to your competitors? These factors are largely determined by your branding and marketing strategies. Branding tools like logo designs, business cards etc goes a long way in creating your corporate image. Any marketing communication material should ideally have your corporate logo on it, which would give more credibility for your business as well as help your client to perceive your business as a professional enterprise. Branding - More Than Just a Statement - A Memory Scar Conjure up in your mind broad rolling meadows with runs of cattle or stock of some type, all discriminate by virtue of a registered brand. That's a most common and accepted understanding of branding. Branding: Bring Back the Jingle! Did you grow up in the '70s and '80s? If so, you probably have a slew of campy jingles from various TV commercials filed away in your brain. Today, advertisers still use jingles to help identify their brand, but not nearly as much as they did "back in the day." Why is this? Into The Limelight To stand out in a cluttered world, become a recognized expert The Trust Issue In Marketing One of the prime motivating factors in the purchase decision making process is "trust". A consumer will at some point for however long or short of a time, ask the question, "Can I trust this company/person/product?" 7 Branding Secrets: Ready or Not? Every company has a brand (how people think of them) whether they created it through design or accident. By creating your brand through design, you shape the way you wish your company to be viewed by customers and potential customers. This will remove some of the uncertainty concerning what others will expect from you and say about you. The power of a brand can't be over-estimated. The Golden Arches are known worldwide. The New Branding Awareness - A Value Based Concept The new branding awareness is about when you take ownership of a commodity, a special talent, concept or product. What is it that you stand for? What you stand for is an experience that your customers feel from you.
|
| © Athifea Distribution LLC - 2013 |