Why do prices always beat the low prices?There used to be a salesman asked the boss: "market, there was a small factory, the price is very low, it is difficult to deal with, what should I do? "
boss asked:" since this factory so much, why is a small plant, and we are the manufacturers? "
in fact, low prices in the market are usually just play" spoiler "role than successes. Antagonistic competition, high prices often was distracted by low prices or even scared, but low prices are always hard to overcome high prices, even in the face of high prices into the ground.
we often found that the worst-selling commodity on the market, and is also usually the lowest price product. Unless there is an absolute cost advantage and product structure, low prices are no longer a regular competition, but strategic competitive tool. Normal price competition, low prices often experienced marketers as a desperate "grasping at straws", and is often the last straw breaks the camel.
price is not purely a pricing issue, but the core problem of marketing. Marketing gurus say, "you're not selling products by price, instead of the sale price. "The teacher said:" marketing sells products through price, marketing is the product selling price. "
price and marketing activities around support price, constitute the marketing system. Low prices or high prices, in fact, is the difference between sales and marketing.
we often see that price determines the sale price of only the core elements, because of the low prices to support other marketing activities. Price determines its marketing campaign can be a rich and diverse, which is determined by the price the policy space of.
prices beat the low prices is the market of norm, low prices beat the high prices. Of course, strategic price war in the industry concentration process is the exception. Marketing is the sell price, understood the true meaning of marketing learn to sell price. Mass for the price of "common sense", it is misunderstanding of marketing professional. Incompetence
low price no matter what the price, will need appropriate marketing activities to prove the rationality and legitimacy of the price, get the price agreed (whether it's worth the price). But that is a lot of misunderstanding.
a lot of people understand is that high prices are needed to support marketing activities, and low cost do not need, because of the low price in itself is proof of that. Sales in the "fighter" search for "sales" follow the word.
we used to see, "naked" listing is basically a failure. So-called "naked" is the price in the end, there is no marketing costs. "Naked" listed on the product, in addition to listed at the beginning of may in the channel causes a certain effect, basically it's hard to have an impact among consumers.
the consumer's purchase must be established on the basis of their identity to the product. This identification comes from the packaging, pricing, consumer experience (such as taste, trial), marketing and brand communications. After the product launch, other identity other than packaging and price, other identity requires a certain amount of marketing support
price agree there are two concepts: one is the price – a price level, this identification does not produce purchases; the second is the price and the value of the associated, whether the product is worth the price, this is the difference between price and value.
low price in itself produce only first agree, does not produce a second identity. The second identity is produced after the consumer experience and marketing identity.
price agreed does not come from itself, but because it proved the value of marketing activities. Marketing activities the marketing policy, this policy will not fall out of the sky.
it was suggested that the marketing policy of the enterprise because enterprise resource, this is a misunderstanding. Early policy input, but resources in advance, not free use, is reserved space and sales of future payment.
the right price thinking is: slightly higher price point when new products and advance out of profit margins, to carry out marketing activities, marketing activities to support the consumer agree on price.
the so-called market is price, this is what I mean.
of course, we cannot deduce from this price the higher the better, but need a balance of price and marketing costs. Because the more expensive, the more you need to put in more efforts to guarantee price agreed.