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Why Shouldn’t You Focus On Price Marketing?
Posted: Sep 25, 2018
Low prices are expressed as a business tool which is the most commonly used in advertising, marketing. However, if the enterprise is just base on the only price, it will make customer have the feeling that this enterprise has no value to mention in the ad.
1. If continuous decline the price, businesses will be difficult to survive long
The biggest advantage of a round of sales off is to create the surprise factor, but how long it will stay with each client? When discounts become a way to attract regular customers, then of course it becomes normal and will gradually lose effect. Meanwhile, the cost of sales will increasingly up and "eat" into the profits of the business.
2. Low price does not reflect the true value of the product or service
Research shows that consumers are sensitive to price. So, a marketing program works well is the one that create more fun for customers and it must be large enough (giving customers other real value) to make them forget about the price. Low Price is to help customers reduce aversion on pricing, but as mentioned above, it will not work when used regularly.
3. Prices creates feelings
Price is belonged to categories of numbers and calculations. Therefore, it tends to trigger the whole left brain, the area that controls rational activity of man. This is not a good tradeoff for a promotional program because people often have emotional before they thought. The results from the analysis of a database including 880 marketing campaign of the Company’s IPA (management consulting) shows that the marketing campaigns directed to consumers’ emotions often create double profit than the marketing campaings directe to customer’s thinking.
4. Advertising emphasizes price will lead to skepticism about the quality.
Regular customers tend to infer that low price means low quality or low value.
5. Low prices will affect customer loyalty
Low prices will impact the customer’s pride. Consumers are unlikely to perceive themselves as customers of the enterprise when he realized that the low price are applied to everyone, not only him. When old customers just pay less money to buy a product, while new customers only buy the product because it is cheaper then enterprise has no value and profit in term of customer gathered.
6. A discount trademark is a trademark which has issues of credibility
One of the ways to assess other’s credibility is to assess his behavior consistent level. When focusing on price advertising, the image will now become weakened. Customers will equate brand of businesses with a low-end brand which often have discount sales. At another point, it shows business has no confidence in his own.
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