Why is it all about the price?
The common definition of marketing we are taught in the beginning is: Putting the right product in the right place, at the right price, at the right time.
It’s simple! You just need to create a product that a particular group of people want, put it on sale somewhere that those same people visit regularly, and price it at a level which matches the value they feel they can get out of it; and do all that at a time they want to buy. Then you’ve got it made!
Well nowadays, in this cold economic climate, things are a bit different. It seems our clients are focused only on price, this being the most influential factor out of the 4Ps.
However, I consider this purely price centred approach self-destructive. You can contradict me and say – we are in business to make money! True – but how long do you want to be in business? How much do you care about your clients, about retaining them, about making them repeat order and be pleased with your products? That is why I am sure that the main benefit of this crisis is that the survivors will be only those companies whose managers are making decisions on long term – and when you do this you can’t ignore that marketing is about:
– right product – good quality, appealing features, ready to satisfy customers’ certain needs, differentiated from the competitors’ offering
– in the right place – offered to a targeted customer segment, in the right shopping area, either online or retail,
– correctly promoted – using the communication channels with best ROI;
– at the right price – matching the value for the buyer.
Unfortunately, if all day long we keep an eye on the competitors – and what they do and just following their prices – we will be soon out of the market. For example, Steve Jobs – he didn’t spend his day checking on Blackberry’s prices when he launched IPhone, did he? He focused on making the product great and unique – with features appealing to its future users. With the right product and the right marketing policy APPLE was listed as 1st brand in the world.
As a retailer it is not only lowest prices which will get footfall in your shop, but also performance in your area providing additional value – great customer service, kind and helpful salesmen that make the shopping experience joyful, add-on products, stock variety, etc. I can bet with you that it won’t be just down to the price!