When we talk about the marketing mix and the 4Ps of marketing , we often treat product, What advertising price, promotion and list of guinea consumer email distribution as if they were separate elements. But when it comes to planning your advertising pricing strategy, you can’t forget that the 4 are closely related. So if you want your advertising to make sense, plan it based on your prices.
What advertising to do according to your pricing strategy
To simplify, today I’m going to explain what the best strategies are for brands that other points to keep in mind: focus on low prices and for “premium” brands that compete in other aspects.
How to advertise for low-price brands
Competing on price is a very attractive option to attract a large number of consumers, but it is not within the reach of all brands. If you want to opt for this option, the first thing you need is to have clear numbers: your company must be able to keep prices low in the long term without sacrificing profitability. Avoid at all costs falling into “price wars” if they are not part of your overall pricing strategy.
You should also know that, in general, it is not possible to achieve high profitability with low america email list prices (that would be too nice, right?). To maximize your company’s profitability with a brand that competes on price, keep these principles in mind:
Having a low-price position from day one. With very few exceptions, all companies competing on price have followed this strategy from the beginning, focusing on producing high volumes at low cost.
Focus on a high-growth, high-revenue model . The larger the business volume, the greater the opportunities to create economies of scale that allow you to reduce costs at every step of the process.
Be extremely efficient. In order to have good profit margins at low prices, you need to be extremely efficient in terms of costs and processes. In particular, you need to reach beneficial agreements with all your suppliers. The supermarket chain Aldi and the IKEA furniture stores are very good at this.
Delivering consistent, adequate quality . Competing on price means giving up competing on quality… but only up to a point. No matter how low your prices are, they can’t hide poor or inconsistent quality. So you need to set minimum thresholds and make sure that every unit you produce exceeds them.