Value Proposition vs. Discounted Prices (Strategy)

Hello, I’m Jim Glover, That Branding Guy, for Once a Day Marketing™. Today we are discussing the need for your company to have a strong value proposition.

The proliferation of coupons and product discounts has created a coupon culture among consumers. This is a pitfall for small businesses when they rely on coupons as a means of driving traffic. To win and maintain a solid customer base, it makes more sense for a business to create a strong value proposition.

 A strong value proposition means that customers feel they receive a good value in exchange for their hard earned dollars. Value proposition may include how your product makes the customer feel, what is included in the offer or a product performance guarantee.

Discounts and coupons are pricing strategies. Extensive use of coupons may create an expectation on the part of your customers for a discounted price and results in moving your product on price rather than the value proposition that you offer, which is the reason you are in business.

However, there is a right place for coupons in your marketing strategy, such as introduction of a new product to entice customer trials. Numerous types of coupons are available in newspapers, online, directly from merchants, etc. Daily deal websites such as Groupon offer discounts for local and national companies. Groupon enables businesses to market discounts to broad audience. The question is, should they?

Spend time refining your value proposition and incorporate that into your marketing message.

Once a Day Marketing™ inspires clients to brand bold. 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 11:00am (MT) streaming live on SantaFe.com KVSF 101.5 FM.

 © 2016 Once a Day Marketing™. All rights reserved.