Hello, I’m
Jim Glover, That Branding Guy, for Once a Day Marketing™. Today we are going to dive deeper into one of
the 7Ps of Marketing: Price. There are
great pricing strategies you can leverage to better penetrate the market or
increase profit.
Today and
tomorrow we will be discussing eight different pricing strategies. Choosing the correct one(s) depends on your
goals. Distributing product in the
marketplace quickly or establishing a position in the marketplace as a very
high-end product that commands a higher price are just two of the factors you
will have to take into consideration.
Always keep in mind that pricing is driven by supply and demand.
The first
pricing strategy is called penetration.
Very low pricing is established to push product into the marketplace
quickly. Margins will be low, however,
this strategy should drive increased volume.
Next is
skimming. A higher price is set at
product launch to capture dollars from early adopters. You are able to charge this customer a higher
price because they are willing to pay a premium to be the first ones to have a
new/upgraded product.
In
competition pricing you decide if you want to be lower, the same or higher than
your competition. Consider gas prices;
at an intersection typically all of the gas stations set the same price
Lastly we’ll
look at product line strategy. Here you
offer a variety of products each at a different price point. Customers on a budget may buy the entry-level
product and there are middle and higher price tiers.
Tomorrow
we’re going to talk about four more pricing strategies.
Once a Day Marketing™ positions brands to become #1 in the minds of target customers. Visit our website at www.onceadaymarketing.com. Contact James Glover at (505) 501-1330 or email glover@onceadaymarketing.com. Listen to Ask Those Branding Guys™ every Monday at noon (MDT) streaming live on SantaFe.com KVSF 101.5 FM.
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a Day Marketing™. All rights reserved.
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